Being laid off is never easy. While you are scrambling to find the next opportunity or job, you are also considering whether or not the severance package offered is fair. While what is fair in one case might not be in another, you should always consider your contract and position before accepting the severance pay that your previous employer has offered.

So how can you know if your severance offer is fair? The best place to start when considering the fairness of your severance package is your employment contract. Your employment contract will usually include terms that protect you in the case of dismissal. Those terms might differ depending on the reason behind your departure, so knowing the exact cause can be a big benefit. You can ask the company representative how your departure will be classified, including whether and when you may be eligible for rehire.

The second thing that can help you ensure a fair layoff package is negotiating. It is unlikely that your previous employer has offered you the best possible package from the get-go, as most likely they expect severance negotiations to take place. As such, they have held back from offering you the best deal available, because they expect you to ask for more. This is why you should never rush into accepting the first severance package offer. Instead, you should look at your rights, contract, severance benchmarks, and even in some cases contact an employment lawyer to bring forth the best possible case for extra layoff pay.

5 Tips to Maximize Your Severance Pay

1. Go in with all the facts ready

Many people underestimate just how much work goes into negotiating your layoff pay. It is not just about the salary you were earning, or even how many years you were in a company. While both of those aspects can be important, the reality is you should go into the negotiation with a lot more data and documentation in your hands. These could include:

• Your employment contract terms
• Your performance, including KPIs, level of work, previous conduct
• Reprimands or other coaching due to errors
• Copies of your monthly, quarterly, and annual reviews
• Data about packages received by other employees at your company

Having all the facts together will make it easier for you to counteract arguments brought forward by your employer, as well as demand higher layoff pay because of your performance or contract.

2. Know what is on the table

One of the mistakes that people often make is that they don't know what they should be negotiating for. Depending on your location and employment contract you might be able to ask for a higher lump sum payment, insurance coverage, stock options, or other benefits. When walking into the severance negotiations you should be aware of what the company is legally required to provide you, what your original contract mentioned, and finally what additional compensation you can request. Having a clear idea about all three will help you see more clearly what you can negotiate on.

To get some ideas and better understand what's possible, you can submit your own severance package to unlock access to our library of layoff packages.

3. Have a clear goal

After you finish your research and you are ready for the negotiation, you should set a goal for yourself. If you don't have a clear goal in your mind of what you want then your attention might be diverted during the negotiations. If that happens you could end up with additional benefits that don't actually relate to what you truly need. This is why having a realistic goal that you are aiming towards will help you negotiate in clearer terms.

4. Don't burn bridges

Just because you have been let go does not mean that you should burn all bridges with your previous employers during the negotiations. Burning bridges could result in your professional reputation taking a hit, having bad references when you look for jobs, and it could eliminate any possibility of returning to the company or working with them in the future. Make sure that you fold on things that are not important and that you negotiate clearly to gain the most without losing out on your relations. In fact, if you have a long-term relationship with the people you are negotiating with, you could even ask for referrals from their networks to help you find your next position.

5. Hire a professional

Finally, if you are unsure that you can do this on your own, it is best to bring in an employment lawyer who can assist you with getting the best possible deal. They are the people who can understand all the legal language and determine what fair compensation would be in your case, so listen to them as you proceed with your layoff package negotiations.

Conclusion

Losing your job is never a nice thing, but you should look to the future. Negotiate a great severance package and focus on keeping good relations and building up your professional reputation. If you are unsure of what you can get or how a good severance package should look, then compare your severance offer to our library of packages. Best of luck with your negotiations.