What do you do if your employer offers an unfair severance package during a layoff in contract negotiation?

1 Know Your Rights

Before entering any negotiation, it's essential to know your legal rights. In the context of a layoff, certain laws, such as the Worker Adjustment and Retraining Notification (WARN) Act in the United States, may entitle you to advance notice or severance pay. Familiarize yourself with your employment contract and any applicable labor laws to understand the minimum requirements your employer must meet. This knowledge serves as a foundation for your negotiation, ensuring you don't settle for less than what you're legally owed and providing leverage to negotiate for more.

2 Assess Fairness

To determine the fairness of a severance package, compare it with industry standards, your level of seniority, and the contributions you've made to the company. Look at components like the length of severance pay, continued benefits, and support for transitioning to new employment. If the offer falls short in these areas, it's an indication that you may have room to negotiate for better terms. Keep in mind that what's "fair" can vary widely, so consider seeking advice from professionals or peers who understand your industry's norms.

4 Communicate Effectively

Effective communication is vital during the negotiation process. Approach your employer with respect and professionalism, expressing your appreciation for the opportunity to discuss the severance terms. Be clear and concise about what you believe is fair and why. Avoid ultimatums; instead, aim for a constructive dialogue that allows both parties to express their views and work towards a mutually beneficial solution. Your tone can greatly influence the negotiation's outcome, so strive to remain calm and composed throughout the conversation.

5 Consider Alternatives

If your employer is unable or unwilling to increase the financial aspects of the severance package, consider negotiating for alternatives that could be equally valuable. This might include extended health benefits, outplacement services, or assistance with job placement. Sometimes, non-monetary benefits can provide significant support during your transition and are more feasible for an employer to offer. Be open to creative solutions that address your needs as you move forward from the company.

6 Seek Professional Help

When facing a layoff and an unfair severance offer, don't hesitate to seek professional help. Employment lawyers or professional negotiators specialize in these situations and can provide valuable assistance. They can help you understand your rights, evaluate the fairness of the offer, and develop a negotiation strategy. Moreover, they can handle negotiations on your behalf or coach you through the process. Investing in professional help can lead to a better outcome and alleviate some of the stress associated with negotiating during a difficult time.