Providing trusted legal counsel for credit unions, banks, businesses and individuals in the Tri-state area since 1989.

What should I look for in a severance package?

On Behalf of | Jul 18, 2022 | Employment Law for Employees |

You negotiated a salary and benefits when you started your job, and you feel secure in the outcome of these negotiations. But now that you are leaving your job, you may be able to negotiate a severance package as well. Severance packages outline what financial benefits you will receive upon leaving your job.

What is a severance package?

Severance packages are offered by employers to those who are leaving their organization. Generally, the worker must be leaving involuntarily, perhaps, due to company-wide layoffs. New York law does not require employers to offer severance packages.

Not only can a severance package involve around one or two weeks of pay for every year worked, but it can also involve the continuation of insurance benefits and even job hiring services. Executives may receive more in severance pay than other workers.

Life insurance can also be continued in a severance package, at least for a month or so. You may even be able to include retirement benefits and pensions earned in your severance package.

Generally, you have 21 days to accept a severance package, and once signed, one week to renege on your agreement if you choose.

Negotiating severance packages

You do have the option to negotiate a severance package. Examine your financial needs and keep these in mind when negotiating pay and benefits after you leave your job. Your employer may already have a severance policy in place. You can also try to find out what other work colleagues are receiving in their severance packages.

If you are interested in negotiating a severance package you may want to discuss your situation with an attorney. This way, you can ensure the final agreement is fair.