When your employer lays you off, you want to negotiate the best severance package. Many workers do not understand that they have some leverage even after their job gets terminated.
If you face layoffs at your job or want to prepare for the worst-case scenario, continue reading to learn more about negotiating for better severance pay. Keep in mind the amount of severance you receive affects your ability to receive unemployment benefits. According to the Office of Unemployment Compensation, you receive deductions for your unemployment after you earn 40 percent of the average Pennsylvania worker’s salary.
Do not sign right away
Understand how long you must sign any paperwork. Usually, you have 21 days to review a severance agreement before you sign. Your employer may pressure you to sign immediately, but take some time to understand your legal rights before agreeing to any severance pay.
Consider other benefits
You might not convince your former employer to pay you more severance, but there are other benefits you should consider. For example, they may owe you compensation if you accrued paid time off. Look at your employee handbook or contact HR to learn about company policy.
Research similar scenarios
Think about the company’s financial situation and what you might request. Compare other severance packages for employees in a similar case. Target realistic goals that you believe your company can meet. The more calculated your requests are, the more likely you will come to an agreement.
Negotiation with your employer after a layoff is complex. Prepare for the situation beforehand, and understand your federal and state protections before signing any documents.