You have seen the writing on the wall. Your job is about to be outsourced and you will soon join the ranks of the unemployed. But while that might be inevitable, you may still have some power. You might be able to walk away with a severance agreement or package that will help ease your transition into another job.
Severance pay comes in different forms
Many severance agreements include payments employers make to employees up their exit.
Lump-sum severance payments are just one option that you as an employee might be offered. Some employees who are offered incremental payments often have contracts with clauses that stipulate additional payments in the event of their disability or death. Other clauses found in severance contracts include but are not limited to clawbacks, offsets and mitigation. Speaking with an employment law attorney can help clarify each option and their benefits.
As an employee, you may have protections under the provisions of the federal WARN Act. Those age 40 and older have some additional legal parameters that pertain to the terms of the severance agreement.
Further, if your employment is being terminated due to a merger or acquisition, that could potentially increase the amount of the severance pay that you receive (although you could also be responsible for an excise tax of 20%).
In the event you are offered a severance package or agreement, seeking guidance from a legal team before you sign anything is advised, as they can offer advice on the pros and cons.