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Here's what to know about these agreements, what they often include, and which components are easiest to negotiate. (Photo: Getty Creative) (PonyWang via Getty Images) Severance pay
Severance packages are often negotiable, and employees can hire a lawyer to review the package (typically for a fee), and potentially negotiate. However, employees are never entitled to any severance package upon termination or lay-offs. [3] Severance packages vary by country depending on government regulation.
“Before you begin negotiating, make sure you understand the terms of the severance package being offered, including the length of the payout, any benefits that will continue and any restrictions ...
Depending on your cash situation, consider whether a severance lump sum or a series of installments is more beneficial for you and negotiate. Your severance money is income in the eyes of the IRS ...
Losing your job can be one of the most difficult challenges you have to face in life, but negotiating a good severance package can help you get back on your feet.
Severance pay is not mandatory; however, employers usually offer severance package as a gesture of goodwill and competitive advantage. Severance pay is paid, if any, based on employee’s years of service and contribution to the company. It may also include continuation of benefits and other perks (health insurance, outplacement assistant, etc.).
Adoption of flexible benefits has grown considerably, with 62% of employers in a 2012 survey offering a flexible benefit package and a further 21% planning to do so in the future. [19] This has coincided with increased employee access to the internet and studies suggesting that employee engagement can be boosted by their successful adoption. [20]
Negotiating a severance is likely a no-can-do even among the most valued service workers, for starters. Just imagine a star barista hitting up an indie coffee shop owner for six weeks' pay.
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