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McOmber McOmber & Luber, P.C.

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Marlton Wrongful Termination Lawyers: Everything You Need to Know About Your Severance Package

April 28, 2017 by Red Bank Legal


Though not required by law, many employers offer employees a severance package when they conduct layoffs. The terms of a severance agreement are generally up to the discretion of the employer, unless previously agreed upon by the employer and employee. Here is what you need to know if you are offered a severance package after losing your job.

Do not confuse severance pay with the last paycheck you receive upon termination. Your last paycheck usually includes time accrued prior to your last day, vacation and sick day pay, and benefits. A severance package is any additional compensation your employer opts to give you in addition to your last paycheck.

Human resource managers do not calculate severance packages randomly. They use a fair and methodical formula to calculate the amount, usually based in part upon years of employment. The details of how your employer arrived at your severance total should be clearly explained in your package. That package includes important details like COBRA information, non-compete terms, a confidentiality agreement, unemployment information, and an agreement not to sue the employer upon acceptance of the severance terms.

How a Marlton Employment Lawyer Can Help

Even though your severance package should include instructions about how to apply for unemployment, in many states you are not eligible to collect it while receiving severance pay. A Marlton employment lawyer can explain your rights under New Jersey law. Most employers also offer terminated employees the option to continue their medical and dental coverage for a scheduled period of time, while they pay their portion of the premiums. After that time, former employees can continue same coverage – but they have to pay their own premiums.

Also tricky to understand are the non-compete agreements mentioned in your severance package. Looking for a similar job nearby can be difficult if you have signed a fairly limiting agreement. Your employment lawyer can tell you if a new job violates the distance, time, and parameters of your non-compete agreement. Some employers are more forgiving about non-compete agreements and are willing to work with former employees on a case by case basis.

Layoffs happen often out of necessity, not because of poor job performance. Many employers are surprisingly generous in helping terminated workers find their next job. Ask if your workplace offers outpatient services like interviewing training, resume writing, and the use of office equipment for job searches. If you are leaving on good terms, ask supervisors for recommendations.

Marlton Employment Lawyers at McOmber McOmber & Luber, P.C. Fight Job Discrimination and Wrongful Termination

 Downsizing and layoffs are an unfortunate reality of the ever-changing job force. It is daunting to get back out into the workforce, especially if your termination was unexpected. The law says you cannot be fired because of your race, religion, or disability. If you feel you have been wrongfully terminated, contact the Marlton wrongful termination lawyers at McOmber McOmber & Luber, P.C.. Call our Marlton employment lawyers at 856-985-9800 or contact us online.

Filed Under: Employment Lawyers, Uncategorized

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