Tips for Negotiating a Severance Package

Employment Law | December 18, 2023 | Written by Natasha Nair

Negotiating a severance package can be a delicate and crucial process, especially when facing employment termination. Whether you are parting ways with a company due to layoffs or restructuring, securing a fair severance package is essential for safeguarding your financial well-being during the transitional period. As experienced employment lawyers, the team from Linley Welwood knows that negotiating a severance package can be daunting. That is why our lawyers have compiled some tips for negotiating a severance package.

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How to Negotiate a Severance Package

1. Take a Breath Before Committing

Negotiating a severance package is a significant undertaking, and the first crucial tip is to resist the urge to make hasty decisions. Before signing any legal agreements with your former employer, take a moment to pause and collect your thoughts. Decisions made under stress or emotional distress may not be in your best interest.

2. Legal Guidance

Seeking legal counsel is critical to ensuring you are well-informed about your rights and the legal aspects of your severance negotiation. An employment lawyer can review your employment contract, assess the terms of your termination, and provide guidance on what constitutes a fair severance package. Their assistance will help you confidently navigate negotiations, addressing any legal complexities that may arise.

3. Seeing the Bigger Picture

While the focus is often on monetary compensation, it is crucial to consider the broader picture during severance negotiations. Your employer may have limitations on monetary flexibility, making it worthwhile to explore alternative benefits. Negotiating for improved health benefits, securing positive letters of reference, or accessing outplacement services can have significant long-term value. Considering various aspects of the package, being flexible in your negotiation approach can lead to a more comprehensive and satisfactory severance agreement.

4. Professional Approach

Maintain a professional demeanour throughout the negotiation process. Approach discussions with a collaborative mindset rather than a contentious one. Communicate your expectations while being open to compromise, fostering a positive dialogue. Demonstrating professionalism enhances credibility and increases the likelihood of reaching a mutually beneficial agreement. Additionally, consider the timing of your negotiations and be patient, as rushing into discussions immediately after receiving notice may not be conducive to a successful outcome.

Please do not hesitate to contact our team for any inquiries or additional information regarding negotiating a severance package. You can easily reach us through our online contact form, and we will gladly help with any questions.

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