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Tips for the Laid Off: Negotiate Your Severance

By Victoria Pynchon

From today's Wall Street Journal, Don't Buckle in Layoff -- timely advice for one of life's worst case scenarios - being made "redundant." 

First piece of layoff wisdom:

Negotiate Your Severance

While not required to do so by law, many employers offer severance packages to laid-off employees. The package's size is usually based on the employee's length of service -- some are entitled to two weeks of pay, while more seasoned employees may receive as much as a year's worth.

If you've been working at your company for only a year or two, there are ways to wring a little more pay from your employer. First, ask that any unused vacation days get tacked on to your final paycheck. (You can also try to do this with sick days, but it's often a long shot.) If you have a stellar record with the company, it's also worth asking for more severance pay or an extension of your health coverage.

For the rest of the WSJ's timely tips, click here.

And while we're on the topic of severance pay, here are a few tips about signing releases offered in connection with severance packages for those over forty.

Know Your Rights If You're Offered Severance by WorkWise columnist Dr. Mildred L. Culp
Two main forces — a declining economy and the graying of the workforce — are causing people to ramp up discussions about age discrimination in layoffs and severance. Under the Age Discrimination in Employment Act (ADEA), employers must follow certain guidelines when they're offering severance, says Andrew Milne, senior counsel with the Bethesda, Md., firm of Garson Claxton L.L.C. He warns employees to:
Watch for undue pressure to sign release of claims when handed a severance package. "You must be given at least 21 days to think about the package," Milne states, "when you're terminated but not part of a group." You must be given the option to revoke the waiver within seven days after you sign it. "This must be set out, in writing, in the release of claims," Milne notes. You also have rights if severance accompanies a group layoff or early retirement program, he indicates. The ADEA stipulates a period of 45 days or more to make your decision, along with the seven-day revocation provision.  Milne says these requirements alone, unmet, won't give you enough to sue. However, if you have evidence of age discrimination, a signed release that doesn't follow ADEA guidelines won't block you from a bias claim.For full story, click on headline above.

Full post as published by Settle It Now Negotiation Blog on February 07, 2009 (boomark / email).