phrase severance pay come from
When a company is struggling to survive in the business world, it may have to cut staff. It is never easy for a boss to choose to lay off loyal and dedicated employees, but the fact of the matter is that sometimes companies need to make tough decisions in order to remain profitable. Luckily, some employers are willing to help their departing workers out by offering them a severance package. Depending on the terms of your employment contract and the specifics of your situation, you could receive anywhere from a few weeks of pay to up to a full paycheck. A qualified severance package lawyer can ensure there are no mistakes made in your agreement and you receive what you deserve.
In short, severance pay is money that a company offers to an employee after their employment has ended, typically in exchange for a release of all claims. It is not a legal requirement, but it can help ease the transition for departing employees, defuse hard feelings and prevent them from suing over a termination.
It is often based on the number of years an employee has worked, with some companies choosing to offer around four weeks pay for each year of service (for example, someone who works for a company for three years would be paid 12 weeks’ worth of severance). Additionally, it can include other benefits like continued insurance coverage, career consultation services or payout of unused vacation and sick time.
where did the phrase severance pay come from
If you are offered severance pay, it is important to remember that it is still taxable income. You will be taxed on it just as you would be on a normal salary, and any other perks included in the package will also be subject to taxes (such as stock options or the option to keep a company cell phone).
While an employer is not required to offer severance pay lawyer to their departing workers, they are usually eager to do so out of a sense of corporate decency and to mitigate potential legal liability. It is also common for severance packages to be combined with non-compete and confidentiality agreements.
Whether you are receiving a severance package or not, you should always negotiate. A lawyer can advise you of the most effective tactics and strategies to use to get the most from your severance agreement. You will also want to make sure that any other amount you are owed outside of your severance package is addressed. If, for example, you are owed expense reimbursements or a bonus that is not included in the severance package, you should discuss this with a Los Angeles workplace attorney.
If you are laid off after working for a company for a long period of time, the severance package may not be enough to cover your living expenses or allow you to get a new job. In such cases, you can seek compensation through a lawsuit against your former employer for age discrimination or other forms of misconduct. Braverman Law PC can help you navigate this process.