How to Handle Severance Package

Recession always means massive job cuts or termination of employees. Industry giants are reporting losses in earnings which has forced them to terminate employees to reduce spending. Small businesses are closing down because the cash flow is not what it used to be.

Although their number of employees is small, they still count as people are still affected in one way or another from the fact that a business has closed down. Your company might be implementing job cuts soon and although it’s not wished for, one of the terminated employees would be you.

Preparing for the Worst

If you know that your company might be implementing job cuts, don’t just be a sitting duck. Prepare as much as you can – research on other companies or even industries that could hire you, know your options for business and the most important of all, your severance package.

The severance package is often the most neglected part in salary negotiation but has become the most important clause because of recession. If you think you will be terminated on your current job, research on what you will actually get. Companies will always stipulate the severance package for better understanding.

Do Not Rush

If you were eventually terminated, stay calm. You know you have a severance package and you’ll get it based on the agreement set in your contract. If all goes well, you will be able to get what you expect to get without any problem. Companies are better off terminating you and paying you an amount right now rather than letting you stay and spend thousands of dollars not including your benefits.

But there are situations wherein the agreement is often not met by your employer. They might reason out that financial problem is the reason you were terminated in the first place and they don’t want to spend more. Although you have to be understanding with them a little bit, you don’t just let them go with your hard earned funds.

Before the termination is official, they will ask you to sign a severance package. Although they expect you to sign it immediately, you are not bound to do so. Give it a day or even a well – legally you will be given 14 days before you agree. Read carefully the severance package offered to you which is according to the contract. If there’s something wrong, point it out to them for an explanation. You might even look for a lawyer to insist your stipulated severance package.

More than Just the Salaries

Aside from the funds from the severance package, there are other types of benefits that you can negotiate. For example, your health insurance should not end once your responsibility with the company is terminated.

Negotiate with the company to keep your certain insurance policies at least for a few months. Also ask about your 401 (k) contributions and on how you can continue this type of financial aid. If your company provides stock options, be sure to clear those things out before cashing them in.

Recommendation Required

Finally, do not forget to acquire recommendations from the highest person in the company. It could be the company’s president or a political president and their recommendations could really take you places.

Companies are not isolated from each other and a good recommendation from one your superiors that could be recognized by any company will boost your chances of getting hired. You might even end up on a higher position because of the recommendation.

When terminated, do not just wait for any type of assistance from your employer. Double check your severance package and other benefits with recommendations to get a good job fast and financial support until you find a job.

Editorial Team at Geekinterview is a team of HR and Career Advice members led by Chandra Vennapoosa.

Editorial Team – who has written posts on Online Learning.

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