Importance of Severance Packages to Employers and Employees

There are different companies in Los Angeles that provide help to their employees once the employment of the latter ended through severance packages. This is a kind of package given to employees which is comprised of different benefits.

There is no law in the United States that requires employers to provide their employees with a severance package once the bond between them ends. If they choose to do so, it will be considered as voluntary.

Avoiding a Lawsuit

Although providing employees with a severance package is seen as voluntary, some employers do it so they can avoid being sued. There are instances wherein employees may sue their employers when they are fired from their job. Negotiation for a severance package is one of the ways that can prevent this situation from happening.

Employees may be provided with a severance package so that they will agree in signing a release. In creating a legal agreement, employers must consider and remember the following:

• Employees should be given enough time to make a decision concerning the release- It is only fair that employers should give their employees enough time to decide whether they will surrender their right of filing a lawsuit. Employers may also suggest that their employees can have proper legal assistance from attorneys regarding the agreement.

• Employees must be given something in exchange of the release- Employers must always remember that they are requesting their employees to waive or surrender their right to file a lawsuit. In return for the favor done by employees, employers will have to give them something that is not usually given to others.

• Avoid giving employees any hint of forcefulness- The decision of employees to surrender their right to sue should be voluntary.

Severance Package Negotiation

Benefits that may be received through severance packages are not limited to money. Negotiations between employers and employees regarding the different benefits can be included in this package. Employees who are in a proper position to negotiate can ask for benefits including:

Unchallenged unemployment compensation There are instances wherein employees and employers disagree when it comes to the latter’s unemployment claim. As a way to avoid this situation from taking place, employees can talk to their employers and ask them not to challenge it.

Outplacement Services

In this kind of benefit, employees are assisted by outplacement firms during the time wherein they are trying to be employed elsewhere. These different outplacement firms can provide employees with job skills training, or other ways or factors that can lead them to potential and probable jobs.

References

If the ties between companies and employees are severed because of a reason unfavorable for the latter, they can try to talk to their employers in order to produce a mutually agreeable letter.

Severance packages are now provided by different companies in Los Angeles because it can greatly help employees during the time wherein they are trying to look for another job. The act of giving it to employees also shows how employees are valued by a company.