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Severance package review & negotiation: Employment Lawyers

In the event of your termination, you generally have the right to either a reasonable notice period for your dismissal or, more commonly, compensation in lieu of notice. This form of compensation is commonly known as a “severance” package.

The severance package you receive should align with the income you would have accrued had you been given an appropriate period of “reasonable notice” prior to your termination. 

Determining what qualifies as “reasonable” for each employee hinges on factors such as your employment contract, legal statutes, and past legal cases. Elements like your age, length of service, re-employment feasibility, level of responsibility, and income usually factor into calculating the duration of reasonable notice. Typically, reasonable notice spans a range of 3 to 24 months, making it a substantial entitlement. We encourage you to get in touch so we can delve into the specifics of your severance package and any unique workplace circumstances you’re facing.

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Your employer may attempt to present their initial offer as a magnanimous gesture. However, it’s crucial not to be deceived – their intention is often to persuade you to relinquish your ability to bring a lawsuit. In most instances, the initial severance offer extended by your employer isn’t their optimal proposal. In reality, this initial offer typically falls considerably short of what you could potentially be granted through legal proceedings.

Prior to signing any exit or separation agreement, it’s imperative that you consult with an attorney specializing in severance packages.

The stipulations within a severance agreement can be intricate to decipher. Your employer might incorporate additional burdensome clauses into the agreement that are not immediately evident. As an example, certain severance agreements might encompass a seemingly generous ongoing salary, which terminates once the employee secures alternative employment. Moreover, these agreements might omit provisions for the continuation of benefits or other privileges during this span.

Furthermore, a significant portion of exit agreements necessitates you to waive your right to pursue legal action against your employer for wrongful dismissal and other potential claims.

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