As an employee rights law firm, we frequently handle cases involving the negotiation of severance agreements. These documents can be long and tedious, and you are right to be concerned about whether you understand everything that you are being asked to sign.
We’ve covered many topics related to severance negotiations, but for those needing a basic overview of what to expect, here is a breakdown of the basic elements.
What is severance pay?
According to the U.S. Department of Labor, severance pay is what is often granted to an employee once terminated from their place of employment. It can be calculated on a variety of factors, including the length of employment.
Most employers are not required to offer severance pay. However, when a company does offer severance pay, the terms generally will be outlined in a severance agreement.
What may be included in a severance package?
The terms of a severance package will vary from company to company. In general, though, here are some terms that you might see within the description of what the company is offering you:
- Years of Service. To calculate the payout you will receive as severance, your employer might use a formula that relies on the number of years you were employed there.
- Vacation, commission, and bonus. Some companies may offer compensation for any vacation time that you did not use during your employment. You should also review terms relating to your commission and bonuses owed to you.
- Other terms. The severance package also can include the continuation of certain benefits, such as health or life insurance.
For many, understanding what happens to your health insurance is a major concern. Under the federal law known as COBRA (Consolidated Omnibus Budget Reconciliation Act), a terminated employee can still continue medical insurance with the company for a period of time, albeit at the employee’s expense.
You deserve justice. We are here to fight for you.
Being let go from your company can be overwhelming and difficult for you and your family. Don’t take it on alone. Contact a trusted Connecticut employee rights law firm to make sure you receive what is rightfully yours.
If you have received a severance agreement for your consideration, you should speak with an experienced employment attorney. Know your rights and options. Contact our Connecticut lawyers today for an evaluation of your situation.