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Don’t miss out on the severance pay that’s due to you

Severance pay, also known as a severance agreement or severance package, is compensation you receive upon termination of your employment.

When negotiating terms of your employment, pay close attention to any language associated with the future potential to receive severance pay in Rochester. For example, you may only qualify to receive severance pay under certain conditions, such as a layoff related to company downsizing.

There are several tips you should follow when negotiating severance terms with your employer:

  • Review any previously signed contract, such as your original employment agreement
  • Make sure the agreement entitles you to adequate pay based on your position, salary and years of experience
  • Don't be shy about asking for a release of rights, such as to protect you against future claims or harassment

How much severance pay should you expect?

In most cases, the amount of your severance pay is outlined in your employment agreement. This doesn't mean you can't negotiate if you're terminated, but your employer will definitely start here.

Some of the factors that impact how much severance pay you receive include:

  • The reason for your termination, such as company-wide layoffs or downsizing
  • Length of your employment
  • The financial condition of your employer, such as if they're facing bankruptcy or in the middle of robust growth

Even if your employment agreement says you're entitled to severance pay, it doesn't mean your employer will necessarily agree to pay the money. They may fight back for a variety of reasons, such as claiming you were terminated as a result of your behavior.

Rather than let your former employer off the hook, collect all the information you have related to the severance pay to which you're entitled. This can include your employment contract, employee handbook and any conversations you've had with the company about severance pay.

In the event that you're unable to work out a deal with the company, learn more about your legal rights. If you have evidence to back up your claim, you're in position to take legal action with the idea of eventually receiving the severance package that's owed to you.

Visit our website and read our blog for more information on severance pay and other employment-related matters in Minnesota.

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Dunlap & Seeger, P.A.
30 3rd Street SE
Rochester, MN 55904

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Phone: 507-316-0628
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