If you did not, please review Terminated.
Certain items may be more or less relevant to your personal situation. The how to write a severance negotiation letter is designed in accordance with the belief that each employee is an individual with distinct priorities and goals.
Therefore, it is crucial to begin by thinking about what is most important to you and the goal of your severance negotiations. The purpose of this information is to provide the reader with the opportunity to be exposed to various options for consideration.
You should talk to a lawyer about whether you have a cause of action under state or federal law for employment discrimination on the basis of a protected trait race, sex, age, disability or whether you have some other potential non-discrimination claim breach of contract, defamation, invasion of privacy.
A good lawyer will be able to tell you whether you have a claim that is worth pursuing in court or which may provide leverage in settlement negotiation.
On the other hand, it is also important to think about whether you are willing and able to endure litigation, which can be protracted and costly. Is your employer willing to offer you a good settlement in exchange for your release?
If so, what do you want to achieve from settlement? Continuance of insurance benefits? A positive letter of reference? It is important to clarify your goals. Your former employer is going to be concerned about exposure to future litigation, especially if you have filed a Charge of Discrimination with the Maine Human Rights Commission or Equal Employment Opportunity Commission.
As such, your employer will most likely insist that settlement is contingent upon your withdrawal of the Charge of Discrimination. If you have not already filed a Charge, your employer may insist on a provision in your severance agreement that forbids you from filing an administrative charge.
As a severed employee, you should be concerned about your future marketability to prospective employers. Disclosure of the terms of your severance agreement can have a negative effect on your marketability.
Insist on an agreement that the terms of your severance agreement will remain confidential. For example, a carefully drafted confidentiality clause will prevent your former employer from being able to disclose the fact that you retained counsel, asserted legal claims, or filed an EEOC or state administrative charge.
The agreement should indicate that the employer will not disclose information inconsistent with the severance agreement or the letter of recommendation. The stated reason for your termination can have a powerful effect on your eligibility for unemployment compensation benefits and your future marketability.
Under Maine law, you will not be able to receive unemployment compensation benefits if you "resign voluntarily without good cause" or are fired for "misconduct.
Also, you may be able to negotiate with your former employer to provide a more beneficial explanation for your termination, one that will not disqualify you for unemployment compensation benefits or dissuade prospective employers from hiring you. If at all possible, insist on obtaining a positive letter of reference from your former employer.
Such a letter protects you in the face of state laws that immunize malevolent employers from liability for "good faith" disclosures of information regarding your job performance to prospective employers.
You may ask a lawyer to draft a positive letter for you or you may draft it yourself and submit it to your employer for signature. Relying on your prior written favorable evaluations may facilitate agreement by the employer on the text of the letter.
Once a letter is negotiated, you should insist that your former employer designate a specific individual who will field all inquiries from prospective employers and who may not make statements inconsistent with the letter or the spirit of the letter of reference or disparage your job performance.
Often the employer will agree to provide a positive reference only if you agree not to reapply for employment. Note that such an agreement not to reapply may be a significant sacrifice if your former employer is a large corporation with several affiliates or with potential to merge with or acquire new affiliates.
If you must agree not to reapply, make sure your agreement is limited to the corporate entity, as it now exists. You should insist on the removal of all adverse references from your personnel file.
In that case, be sure to secure the right to review the file to ensure compliance with your agreement. Should you reach a severance agreement with your former employer, you do not want to be deemed to be in breach of the agreement for failing to return company property.
This included writing a draft letter of reference and sourcing the right outplacement counselor. 5. Clearly communicate any obstacles and options to get beyond them. There was one obstacle in this negotiation and it had to do with how to handle mitigation income. This was the only time where it seemed like there was no middle ground. 6 STEPS TO PREPARE FOR THE NEGOTIATION Step 1: Review and evaluate the documents. Some key things to note: Get your Paperwork Together and read through it - All Company policies, offer/agreement letter. >Anything that suggests an employment contract . The agreement should indicate that the employer will not disclose information inconsistent with the severance agreement or the letter of recommendation. The advice of counsel along with assistance in negotiation and document preparation is essential. Reben, Benjamin & March Injured Workers’ Legal Center. Mailing Address.
Talk to your employer early on to decide which documents and property belong to the employer and which belong to you.This included writing a draft letter of reference and sourcing the right outplacement counselor.
5. Clearly communicate any obstacles and options to get beyond them. There was one obstacle in this negotiation and it had to do with how to handle mitigation income. This was the only time where it seemed like there was no middle ground. Apr 13, · How To Negotiate Severance.
Don't sign a severance agreement until you've taken the time to discuss everything from a greater payout to extension of health benefits. Providing references or outplacement services for terminated employees may not be part of the legal severance agreement and can be included in a severance package summary letter.
Negotiating a Severance Package. Not all severance package letters are from a company to an employee. Sep 02, · How to Draft a Severance Agreement. In this Article: Drafting a Severance Agreement Negotiating the Terms of a Severance Agreement as an Employer Negotiating the Terms of a Severance Agreement as an Employer Community Q&A When an employee is fired or laid off, some employers enter into a severance agreement with the terminated employee%(1).
issues, and thus many negotiation and drafting issues will be similar. When the context proposed severance agreement or a cover letter specifies who will handle any questions about the agreement.
The employee should not feel constrained by that designation since. NEGOTIATE THE RETENTION OR RETURN OF COMPANY PROPERTY. Should you reach a severance agreement with your former employer, you do not want to be deemed to be in breach of the agreement for failing to return company property.
Talk to your employer early on to decide which documents and property belong to the employer and which belong to you.