Don’t leave anything behind in your office, Severance packages

Don’t leave anything behind in your office, Severance packages

There are a lot of people who had been employed under the same employer for years and when they leave the organization, they are entitled to receive a certain sum of money as severance as they leave their jobs. Even the employees who are dismissed from the jobs are entitled to receive those benefits. 

Here is a story of Jerry, who is 41 years old and worked in a quite reputed financial services company for the past nineteen years. He was dismissed all of a sudden without prior notice. He was holding the position of a senior manager and he had about a dozen employees who were reporting to him. The dismissal was a great shock to the morale of Jerry as he was a sincere employee. He came into contact with Hermie who helped him channel his energies and then get rid of the uncertainties he had faced in life. 

Jerry was given a severance package as he was dismissed. He was wondering as to whether he has to accept the package provided to him or he will have to revolt against the organization by hiring a lawyer. The advice provided to him by Hermie did provide much relief and peace of mind. Just like how Jerry found Hermie, there is a lot of Employment Lawyer in Toronto whom you can hire to file the legal proceedings of the severance package. 

Hermie is a very proactive consultant who guided Jerry on all the legal proceedings of the severance package. This not only provided Jerry with a very good financial settlement, but also a very smooth negotiation process. The matter was resolved in a very short span of 64 days. 

Things to know about severance packages 

Speaking of severance packages, there are few things like an employee when he is associated with a union has to get a week’s pay of a year multiplied by the number of years of service to that organization. There is also another factor like an employee can get two week’s pay of a year multiplied by the number of years of service to that organization when he is not a part of that union. 

There are certain things you need to be aware of the severance package to avail the complete benefit out of it. The few are listed below. 

  • Get your last pay along with severance package 

You need to get your last pay along with the severance package. Along with pay, you are also entitled to enroll yourself for employment benefits like medical insurance, etc.

  • No legal obligation 

There is no law under the government of the United States of America that the employer must provide a severance package to the employee who is leaving the organization. It is an agreement signed between the employer and the employee at the time of joining. So, it becomes a very mandatory thing to read the terms and conditions filed under the severance agreement. 

  • Purpose of severance

One of the major purposes of severance is that a company has to guide the leaving employee as to how he needs to find a job for himself in the industry. Usually, people with too many years of service aren’t accepted with open arms in the other organizations, so this guidance would play a very significant role. 

  • Class of workers 

Not all the workers who had served in the organization are eligible for severance pay. Many companies don’t provide severance pay for the workers who work on an hourly basis. Only the salaried employees are eligible to receive the severance pay benefits. 

  • Mode of Pay 

The employees should be aware of the mode of payment before they are signing the severance agreement. There are few companies which pay in a lump sum and there are other companies which pay in installments over some time. The sick leaves are taken in a year and other calculations are also made. 

  • Subjected to change 

When the company is being merged or some changes are being made in the business policy of the organization, then there are chances of the severance agreement getting terminated. There are also certain circumstances under which the employee will be paid the sum of money and there are also other circumstances where he need not be paid. One has to read between the lines of the document and then sign the papers. 

  • Confidentiality 

The employee who is leaving the organization is expected to maintain certain levels of confidentiality. All the information has to be kept under tight check and the employee is required to maintain the decorum of the workplace outside the work atmosphere.  By being aware of all the terms and conditions and by employing the right lawyer, you can get your case worked out in your favor. It is always better to know certain things before hiring a lawyer.