Memphis Severance Agreement Attorney
Our Memphis severance agreement attorney, Alan Crone, goes into detail on what goes into a reasonable severance package. There is no handbook for crafting a severance package. Since employers do not have a legal obligation to offer severance packages there is no one-size-fits-all package for employees. If you are an employee and your employer comes to you with a severance agreement it is best to read it over and discuss it with a legal professional to determine the value of what the employee is getting and what the employer is getting in return. Potentially, the employer is giving an employee a severance package in consideration of an employee not suing for some various reasons. There is no number you can put on a severance package but to try to get as much from an employer as you can get.
The reason why companies offer severance, even though they don’t have to is because they want to create goodwill and protect their reputation. The reasonableness of a severance package is based off of employer goodwilll and the employee’s age, tenure, position, re-employment prospects. But could you imagine if a company like Amazon laid off a veteran employee and gave him zero severance? That type of negativity would spread all around social media quickly.
Severance packages does depend on what an employer can provide Typically severance packages will include severance pay based on terms of service, Commission, Bonus, and deferred compensation payouts due, Rights under a pension, profit sharing, and 401(k) plan and Stock options.