When's the best time to negotiate a severance package?
Believe it or not, it's when you get hired.
Having provisions spelled out up front in case of a layoff
is a negotiation tool that upper-level executives often use.
But even if you're not a corner-office hire, there's no
reason that you can't ask for a few assurances if worse comes
to worst.
When you get a formal job offer, ask for an agreement to
be included, such as three months' severance pay. Should you
lose your job, you'll have your contract or offer letter with
specific guarantees and possibly legal rights in hand. (Just
remember where you filed the sucker.)
If you're already working and have been taking advantage
of the Employee of the Month parking spot, then there's
usually not much wiggle room on negotiating a better deal --
especially in a mass layoff situation. Most companies consult
with a pack of lawyers to make sure the fateful day goes
smoothly. Although they aren't too fearful of lawsuits, they
are concerned about bad press -- both their outside
reputation and among remaining employees.
Still, there are some measures you can take to soften the
layoff blow. Here are a few tips we got from our resident
Human Resources Fool:
Get everything you've been promised in
writing. Remember, you cannot be forced to sign
something on the spot. Take the paperwork with you, and agree
to drop it off after you've had time to review it with a cool
head. Consult a lawyer if need be -- especially if a lot of
money is on the line or if you were axed before a bonus,
commission, vesting period, or some other important deadline.
Then schedule a time to come back with questions and show off
your new golf swing. If you are dismissed "with cause,"
however, your former employer may not owe you a cent.
If you have some notice before the day the ax finally
falls, do a little research. Call friends who have
been through it -- in this economy, chances are a few of your
pals can commiserate -- and compare severance-package notes.
If nothing else, misery loves company.
Volunteer to stay for another 30 or 60
days. If you can set your emotions aside, offer to
help with the transition, shut down your department, or train
your remaining coworkers. By prolonging full pay and
benefits, you can push off your severance for a little while.
Besides, leaving on good terms is a good move. You'll benefit
from a glowing reference and the satisfaction of being a
bigger person than most.
Consult the employee manual. If you're
determined to walk out the door with one of your employer's
valuables, take the employee manual. You can glean some
important info about policies, procedures, and the amount of
time you can hang on to that sweet dental coverage.
For more Foolishness:
General Motors: Still a Loser
Why You Shouldn't Listen to Jim Cramer
Everyone Is Buying These Stocks
This article was originally published as
4 Ways to Survive a Layoffon
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