With lay offs being heard around the world, employees are being faced with tough choices: take the usually attractive severance package or to walk away and leave options open against their former employers. These choices are hardly novel, however, the situations in which they arise are novel because of the economy. Companies are putting intense pressure on their former employees to sign severance agreements.
A couple of days ago we received a call from an employee because her employer had given her one day to sign the severance agreement or face immediate termination and no severance. However, the agreement itself stated that she had 21 days to review it and advised that she retain a lawyer to review it. We stepped in right away and the situation was resolved.
With the economy being volatile and employers feeling the need to clear out employees, these tactics are not unheard of. But, individuals need to think about what to do if they are faced with such a situation.
Remember:
- If the agreement gives you a deadline, your employer must abide by that deadline. They cannot force you to make a decision before that deadline occurs. It is a written promise and they must uphold it.
- Review the entire agreement. Find an employment or contract lawyer that can help you understand the terms of the agreement, discuss other options, and advise you accordingly.
- Sign the agreement once you have understood the terms and are ready to move forward with your course of action.
- DO NOT feel pressured. Severance agreements are an OPTION, not a requirement.
- It is a contract. Remember, it can be negotiated withe your employer. You may be able to ask for more money or extended benefits.
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