The severance package is a collection of benefits provided to employees who are fired or resigned. This package may consist of an additional salary, ongoing health insurance, and so on. Your behavior after being fired, your performance while on the job, and your company's financial situation can all affect your severance package. Use the following tips to negotiate a severance package when you're fired.
Step
Method 1 of 3: Accepting the fact that you were fired
Step 1. Stay professional
No matter how fast or late your notice of termination of employment is received, maintain your professional demeanor. Maintaining a professional demeanor will help you ensure that you can ask for references from the old office in the future.
- If you are invited to a discharge interview, you may be able to raise a complaint.
- If you stay in the same line of work, you may collaborate with or even be interviewed by a former coworker. If you don't act professionally when you're fired, you may leave a bad impression on your coworkers, and your reputation will deteriorate. You may even miss out on future job opportunities.
Step 2. Find out why you were fired
Knowing why you were fired can help you become a better employee, as quickly or as late as you receive your termination notice. The dismissal meeting should be an explanation for why you were fired. Consider the reason you were fired to be able to develop yourself in a new workplace.
If you were fired for no reason, you can ask why you were fired instead of someone else. You can also ask for feedback on your work, even if the company fired you
Step 3. Recognize that sadness can be serious
Grief should be considered an injury that takes time to heal, just like a physical injury. While it's common to feel sad when you're in a breakup, for example, losing your job can also be sad. No matter how quickly or later your notice of termination of employment is received, you may feel sad when it happens.
Deal with sadness effectively. Join a support group, accept that you've lost your job, deal with your emotions in others, and maintain a positive attitude and sense of humor
Method 2 of 3: Understanding the Severance Plan
Step 1. Know the amount and severance pay
The severance package for each employee is different, but generally includes severance pay. Some companies may pay severance pay in cash, but other companies may pay in installments. Know the amount and severance pay you will receive.
- Find out if your severance pay includes paid leave, such as vacation or sick leave. Some companies pay the leave as part of the severance pay, so there's nothing wrong with asking.
- Also find out if the termination agreement requires you to cancel your claim for unemployment benefits.
Step 2. Clarify the availability of insurance benefits
When you experience layoffs and are offered a severance package, you may be able to receive insurance benefits in addition to severance pay. The insurance benefits included in the severance package may be group life insurance, health insurance, dental insurance, or eye insurance. Although it's not always included in every severance package, it doesn't hurt to inquire about the availability of this benefit.
- If you do not get insurance benefits in a severance package, in America, at least you can continue your health insurance benefits at your own expense for a maximum of 18 months. This is regulated under the Consolidated Omnibus Budget Reconciliation Act (COBRA), and applies if the company that fired you has more than 20 employees. COBRA-guaranteed insurance must be paid at the rate the company pays, which can be very expensive.
- If you decide to discontinue your health insurance benefits through COBRA, in the US, you can apply for insurance through the Federal market at special times.
Step 3. Reread the consent details
Your layoff agreement may contain other details you should know, such as information you can or cannot share with your new employer. These details may affect your consent. Read the consent form carefully before you receive it, to ensure that there are no problems with the consent.
Enlisting the help of an employment law expert to explain the details of the agreement may help you
Method 3 of 3: Negotiating Severance Packages
Step 1. Prepare for layoffs
Even if you are shocked by the layoffs, even if you know the layoffs are imminent, it's a good idea to plan to negotiate a severance package before the layoffs occur. This plan will help you execute smart decisions to make when your mind is not clear.
- If you don't already have a lawyer, find one who can help you negotiate a severance package, especially one with experience in the employment field. That way, you'll know who to call when you're fired.
- Lawyers with experience in employment can also help you keep your emotions in check by helping you understand your severance package and providing advice on negotiations.
Step 2. Consider the offered offer
Taking time to consider your offer is important because there are several aspects of an agreement that can have a significant impact on you. For example, you may no longer be able to work in the same field in a few months/years, or you may not be able to invite clients to your new workplace.
- In most states in America, the non-competition clause cannot be used. Contact a lawyer for more information.
- Also be aware of clauses that might limit your ability to sue the company on grounds of discrimination. If you feel discriminated against and need to sue, pay close attention to consent.
- In the United States, workers aged 40 and over have 21 days to decide on a severance package, as part of federal anti-age discrimination laws.
- Make sure you compare the agreement with the worker manual to ensure that there are no clause mismatches. If you find a clause mismatch, contact an employment attorney, or at least your employer.
Step 3. Negotiate agreement
It's best to try to negotiate, with the help of an employment attorney whenever possible. Most employers will feel guilty about firing, and this guilt you can use to negotiate a better deal for you. Taking the initiative to negotiate is very important. You may make requests for the following:
- More severance pay. If your severance pay is in cash, try asking for double severance pay. If your severance is paid monthly, try doubling the number of months you are paid. Severance pay may include bonuses or remaining leave.
- Work equipment. You can ask for your old work equipment, such as computers, laptops, etc., or buy them at a discounted price.
- Use of office space. You may be allowed to use the office space to find a new job, which can be useful if you need to print resumes and the like.
- New job counseling service. Some employers may be willing to pay for this counseling service, which can help you find a new job more quickly.
- Insurance. Your insurance may be paid for by the company as part of negotiations.
- Recommendation. You may be able to get a letter of recommendation from your old office as part of the layoff agreement. This letter of recommendation can help you find a new job.
Step 4. Know your negotiating skills
If the company is in crisis, you may not be able to ask for more than the company offers, but you can ask to trade one benefit for another that you need more. For example, you could ask for a smaller severance pay and insurance.
If the company isn't in crisis, you may not need to trade benefits for more
Step 5. Pay attention to your situation
Companies may fire for the sake of efficiency, but there are consequences for the company when firing you. Know what it means not to have a job. If you have children or a medical condition that is expensive to treat, you may be able to mention this during negotiations.
Step 6. Speak
You may be able to win the negotiation if you make an alternative offer. Therefore, it's a good idea to politely submit an alternative offer for an amount higher than your expectation when you accept the offer of a severance package, and then let the negotiations take place.
- For example, if you are offered a severance offer worth 6 months' salary but you want a severance offer of 9 months' salary, make a severance offer worth 12 months' salary. They may give you a 9 month offer, so you get what you want.
- Keep in mind that some companies don't provide negotiation space, so you should maintain your courtesy and avoid getting defensive. By being defensive, you run the risk of getting a smaller offer, or even losing the offer altogether.
Step 7. Know phrases that might help you in the negotiation process
Certain phrases can help keep negotiations friendly and productive. For example, you can ask the question "is there room for negotiation?" related offers. However, in some negotiations, you may have a negative outcome.
