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How To Get Severance Pay

Full Video Transcript

The best way to make sure you get severance pay upon a job termination is to have a clause in your employment contract requiring it. But if you don’t have that, you might still be able to negotiate a severance package when your job ends. For instance, if an employee handbook or other written policy provides for severance pay, or if it is customarily provided to departing employees in similar positions, then an employer’s failure to provide it may be grounds for a lawsuit. Also, if there is a dispute between the employer and employee, such as whether or not there was cause for the termination or whether the employer properly classified the worker or paid enough overtime, then the employer may offer a severance in exchange for the employee’s agreement not to sue the employer. For these reasons, employment lawyers typically recommend that workers refrain from signing anything at the exit interview or upon job termination. Signing a release too early may strip workers of otherwise valid legal claims that could be had against the employer.

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