When your employer moves to terminate you without cause, they may offer you a severance package to lighten the blow. At first glance, one of these severance agreements might look enticing. After all, they could offer you a lump sum payment and ongoing benefits for a certain period of time. However, you have to be careful with how you approach these agreements. Otherwise, you could be left in an unfavorable position once you leave your employer. This includes knowing when you shouldn’t accept an offered severance package.
When should you avoid taking a severance agreement?
There can be several circumstances when it’s a bad idea to accept a severance package. These include:
- If you plan on taking legal action against your employer, since many severance agreements require you to release the employer from any future legal claims.
- If the terms of the agreement are so restrictive that you won’t be able to effectively pursue your goals once you leave.
- If the amount of compensation offered in the agreement is too low considering the circumstances.
- If you’re feeling pressured to immediately sign the agreement.
If you find yourself facing any of these circumstances, then you might want to slow down, regroup and figure out the best way to negotiate the type of agreement that you deserve.
Do you need help getting a handle on your severance agreement?
If you do, then you may want to discuss the circumstances with your attorney. There might be effective legal strategies available to you that give you an edge with your employer. By acting on those advantages, you might be able to secure the outcome that you want moving into the next chapter of your life.