When an employee leaves a company, he or she may be entitled to severance pay. Severance pay is money that is provided to an employee upon termination. It is typically part of what is called a severance package. The package is often offered to employees who are leaving the company due to a layoff or forced staff reduction. A severance package should provide you with enough money so you can get by until you are able to find another job. A Pennsylvania employment attorney will help ensure that you receive an adequate severance package.
How is Severance Pay Determined?
Companies may calculate severance pay in various ways. Not every employee is typically entitled to severance pay when he or she leaves. Severance may be calculated as a portion of your regular pay and is often determined based on the length of employment. For example, an eligible employee may receive a week of severance pay for every year of successfully completed employment. However, the terms of a severance package will be specific to you.
It is important to note that a severance package may be part of an offer provided to an employee as part of a layoff. Employees who leave the company on their own accord will not generally be eligible to receive these types of payments unless they are specified as part of a separation agreement that is already in place.
Severance as Part of Separation Agreements
Severance pay is often one of the many issues that are detailed as part of a separation agreement. The separation agreement may also contain additional features such as non-disclosure agreements, non-compete clauses, and limitations on the ability to take legal action against your employer. In addition, the agreement may include how benefits are to be paid such as whether vacation time or earned sick pay is to be distributed.
Severance packages often provide you with a fixed amount of money or payments for a specific period of time. It is necessary to get severance payment agreements in writing. This ensures that the company will follow through on any promises that were made verbally. It also protects you and provides you with information that you can review later.
Pennsylvania Employment Attorneys
If you are facing a layoff or termination it will likely be a stressful and difficult time in your life. You could be afraid of the future and whether you will be able to meet your financial needs. Before you agree to a severance package or separation agreement, it is best to have the contract reviewed by an experienced Pennsylvania employment attorney. Your lawyer will examine the document and will provide any changes that may be deemed necessary to protect your rights.
The goal of a severance package is to help you meet your temporary financial needs following a termination. It will also typically include a clause that prevents you from filing a lawsuit or taking any legal actions against your employer in the future. It is important to thoroughly read and understand the contract before you sign it because it may not give you the protection you need.
When you are going through a layoff or termination, contact the team at HKM Employment Attorneys for the legal help you need.