The Pros and Cons of Severance Packages

With the recent economic recession, many businessesfairly obvious. If you have recently lost your job, any
are opting to downsize. Whether that entails budgetmoney coming your way is advantageous. Oftentimes
cuts, expansion holds, or large scale layoffs, manythese packages are equivalent, if not more than, a
employers are still struggling to stay afloat. If you havepaycheck's worth of compensation. As you search for
been the unfortunate victim of a company-wide layoff,a new job, severance can help you sustain your
your employer may offer you a severance package.lifestyle and support your family while you are
Although seemingly well intended, some severancein-between jobs.
offers have drawbacks that you may not haveCons
considered.The disadvantages of severance packages are a little
What is a Severance Package?less apparent. A common complaint made by recently
For many employers, layoffs are an easy way to"let go" employees is that the paperwork for acquiring
significantly reduce spending. When they opt to go thisa severance check is tedious and lengthy. In many
route, employers may offer their recently "let go"cases, paperwork processing can delay your
workers a check that is intended to supplement theirseverance check for weeks to even months. While
income while they search for other work. Ayou are looking for a job, every day matters. Going
severance package's worth varies from company towithout income for any period of time may
company, as well as from employee to employee.compromise your ability to keep up with your financial
Employers may consider the following circumstancesobligations. Additionally, accepting severance may
when determining how much severance to offer:disqualify you for receiving unemployment benefits.
• Pay level/salary received prior to terminationMany employees are not aware that if they accept
• Duration of employmenttheir company's severance package, they are
• Position at companyforfeiting their rights to file a claim against their
• Performanceemployer for any misdeeds they may have
• And other pertinent factorscommitted.
It is important to remember that although you may feelFor more information on whether or not you should
like you deserve severance, employers are notaccept your severance package, or for legal consulting
required to provide one in the event of a layoff.for how to file a claim against your employer, contact
Prosthe San Antonio employment lawyers of Melton &
The perks of being offered a severance package areKumler, LLP.