Clients come to me with many different types of severance packages. This is because not only is every company different, but also because the severance might derive from a layoff, termination or when someone quits their job and triggers severance.
Unless the circumstances surrounding an employee leaving a company with an employment agreement already in place are in flux, perhaps because they have not been paid all the compensation they are owed, there is really nothing more in terms of severance I can negotiate. This is heightened by the fact that in these types of agreements the severance amount has been negotiated and bargained for. Unless the employee has been negligent in their duties or done something criminal, chances are, upon separation, their employer will pay them the severance they are owed in the agreement.
While I have been very successful in getting more in severance pay for my clients, I believe the true value of my services lies in getting the employer to agree to certain terms and conditions in the agreements that cost the employer nothing but provide tremendous value to the client going forward, especially if they are trying to get another job.
Many times, the employer will desire to pay the severance in an entire amount or one lump sum. One would think this is great because they are getting all the severance up front. In reality, this is an employee’s worst nightmare. This is because the employer will over-duct the taxes being taken out and often times the employee is getting as much as one-third less than they thought. Truth be told, if the employer over-deducts, the IRS will give it back to the employee but they have to wait for it. The value I provide is by negotiating better payout terms, so the monies are paid to the employee over a longer period of time, with the regular taxable deductions being taken out of the severance payments.
One issue that many attorneys overlook is the issue of the neutral reference. Simply put, no company, when called by a prospective employer is going to want to give a good or bad reference. With that said, I have been able to negotiate a neutral reference whereby the employee tells the prospective employer that they can call a certain person at his former job who will give that person very simple, neutral information, i.e., how long employed, job title, salary, etc. This helps the employee get another job quicker, because the prospective employer is pleased that his or her former employer is cooperative, which means the old company is putting a seal of approval on the employee going forward.
Please contact Business Employment Lawyer Andrew S. Bosin at 201-446-9643. Andrew is located in New Jersey outside of New York and charges flat rate fixed legal fees for most projects and engagements.
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