Before Signing a Severance Agreement, Consult a Labor and Employment Attorney

You may believe that you are in fact lucky to have been offered a severance package after learning you’ve been laid off. While it’s true that many employees don’t receive severance packages when exiting a position, just because you did doesn’t make your severance package a good deal. In fact, legal action may be much more in your interest than signing off on a severance agreement. Before you sign anything, have the agreement reviewed by a legal professional.

Don’t Waive Your Legal Rights

When you’ve lost your job a severance package can give you the financial and health insurance support you need and cover you until new employment can be secured. However, by signing too quickly you may sign away legal rights you otherwise have. In fact, in many cases, you might be better off considering one of the following actions:

• Contesting. If you’re getting severance because you’ve been illegally fired due to discrimination or the terms of your contract have been breached, you should consider contesting and possibly pursuing other legal action.
• Reviewing. Although upon reading the agreement you may see nothing wrong with it, your attorney will look at it through different eyes. An experienced attorney can skillfully examine the agreement and may find ways to improve it and negotiate more ideal terms for you than you’d otherwise receive.
• Negotiating. You may feel that you have no power to negotiate the terms of your agreement. That actually isn’t true. There are many ways in which your attorney may be able to negotiate better terms.

Further, even if you’ve already signed the contract you may be able to revoke that consent. If you’re over 40 years old, under the Older Workers Protection Act you may have seven days from the date of signing to change your mind.

Severance and Unemployment Insurance

Due to recent changes in unemployment benefits in New York, any severance payment received within 30 days of termination counts against your unemployment insurance entitlement. Therefore, if you intend to collect unemployment insurance it’s important to understand the impact that salary continuation programs or lump sum payments will have on that.

Discuss Your Situation with a New York Severance Agreement Lawyer

Losing your job can have severe financial and emotional impact on you and your family. You may feel at a loss about your future job prospects and how you will help provide for yourself and your family. Protect your rights to future employment and get the best severance package possible by consulting a skilled New York attorney.