So, you’ve been laid off. Your soon-to-be previous employer has handed you a packet of documents outlining your severance package and you have a ton of questions. Should you sign your severance agreement now? Should you take the time to look it over? What does all of this mean? Whew! Take a breath. We know this is an extremely overwhelming time for you and your family, and we’re here to help. Here is what you need to know about your severance pay:
WHAT IS SEVERANCE PAY?
Severance is a term of your employment agreed upon by you and your employer. Your employment contract may stipulate your entitlement to severance pay, or it may be a company policy applying to all employees. Regardless, employers must establish a documented, justifiable business reason for your layoff resulting in severance compensation. You should speak with an employment attorney to understand your severance rights as an employee.
WHAT IS YOUR SEVERANCE PAY BASED ON?
Your severance pay is determined based on the number of years you have been with your company, whether you are in a management or executive position in the company and the size of the company. Your employer will also take into consideration whether severance is listed as a part of your employment contract.
HOW IS SEVERANCE PAID OUT?
Severance is not always monetary. Instead of handing you a check, some companies may extend your health benefits for a period of time or offer career coaching and outplacement consultants to help you jump into a new position. If you’re unclear about how your severance will be paid out, or do not feel it is in line with the value you brought to your company, speak with one of our severance negotiation attorneys in Connecticut today.
SPEAK WITH AN EMPLOYMENT ATTORNEY IN CONNECTICUT TODAY
Severance packages can affect your ability to claim unemployment insurance, and there may be year end tax liabilities if you receive a lump sum or continued salary payments. We want to make sure you are making the right decision for yourself and your family now and in the future. Before signing anything, sit down with one of our employment attorneys today to review your current severance package, discuss how you could receive more for your layoff, or to review your employment agreement as a whole. Let us help you start this next chapter in your career. Contact Carey & Associates, P.C. today!