Changing employment can be a stressful, life-changing event. Severance benefits can, however, ease the transition period. With sound advice from a skilled employment law attorney, California employees and employers can both negotiate severance packages which suit their needs.
While it may seem like a severance package is simply a final lump sum figure, the reality is that it can be a complex combination of many different components. An effective negotiation begins with identifying which of those components are most important to you. For example: many employees may be concerned with continued access to health insurance, and may therefore negotiate a lower lump sum payout in exchange for continued coverage. Employers, on the other hand, may be concerned with preventing a future lawsuit against the company. These employers may negotiate a comprehensive release of liability in exchange for the employee’s agreement not to sue the company.
Some people imagine negotiations as a poker game, in which neither party reveals his or her ultimate goals. This will not result in any resolution – let alone one which satisfies both sides. Instead, it is important for each side to be clear about what is most important so that solutions can be tailored to the needs of all involved parties.
It is also important for employers to realize that employees should have reasonable access to legal counsel in the severance negotiation process. Rushing employees into a severance package without giving them adequate time to consult counsel can result in claims that the deal was unfair later.
In creating agreements, it is important to be creative, and not get stuck on any preconceived notions of what the outcome should be. Not every package has to result in a lump-sum payment. Different components can be negotiated and offset to reach an ultimate resolution. There are many options, and the more that are explored, the more likely it is that each party can have their needs met by the settlement; negotiations are a fluid process. With so many components to a severance package, it is highly likely that your goals can be met by altering one or more components.
Skilled Negotiation for Any Severance Settlement
The experienced attorneys at Structure Law Group are here to help employers and employees with all severance negotiations. Call (408) 441-7500, email firstname.lastname@example.org or use our online contact form to schedule your consultation today.