How to Gain Favorable Severance Package Agreements

Being continuously employed is more or less aemployees to ask for what they believe is just
sign of economic security for an employee,and lawful to ensure their continued economic
especially if his or her family has no other sourcesecurity even as their employment and regular
of income but the salary being earned by thesalary is on shaky ground.
employee.Here are several tips in negotiating for your
However, even if the employee has shownseverance package agreement:
exemplary performance on the job, nothing may1. Preparation - distinguish yourself from the
keep him or her from maintaining or holding on toothers being offered with package. Set these
it if the company itself is going out of business orfactors about yourself apart from others:
suffering terrible financial losses.- your year of service
Failing businesses eventually closes down and then,- contributions to the business
even if there is still some money left in its bank- specific contribution that had a huge impact in
accounts, these funds are returned to thethe business
investors of the business. Thus, there is noRepeatedly persist on these albeit politely
chance that the employees affected by thestressing your right to sufficient package based
closing down may get any severance pay.on these points.
Some companies that are already failing but have2. Remember that items you may want to be
not yet entirely shut down, may provideincluded in your package may not have been
severance payments for those employeesconsidered or thought about by your employer.
intending to remain behind even as the company3. If you feel that the employer benefits plan to
continues to suffer constraints. While those whobe offered on the next month is much better
are being discharged because of downsizingthan what is being already offered, you can
policies, to save at least part of the business,request that the date of your official termination
may be given severance pay as an act ofbe changed to avail of the next month's package
goodwill by the employer.offer.
If the company has failed altogether and shut4. Other important milestones may be treated
down, there is no reason for the company tothe same way, too. If you were already nearing a
preserve any goodwill with former employees,vesting milestone to have stock options, check
although admittedly, they are the hardest hitout to see if you can extend your termination
when these things happen.date and then request for a prorated incentive
Receiving severance pay would have helped inpayout.
tiding them over after losing their jobs. However,If these do not work, appeal to your human
this kind of benefit is based on the capacity andresources manager and supervisor, ask about
or willingness or the employer, a managementtheir terms and sign if you agree to such terms.
prerogative.It would still depend largely on your company's
On the part of the employees, negotiation is thecircumstances and financial situation.
key to gaining a severance package and securingHowever, this issue has grave importance on
an agreement with the employer concerning theevery employee facing these circumstances.
provision of such package.There is no other way than to assert yourself
It remains largely on the decisiveness of theand hope for the best.