How to Negotiate Severance Pay Up Front
Offered a risky, but interesting job proposition? Here's how to negotiate for some financial security if things don't go as planned.
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Instructions
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Figure out if you're in a position to negotiate for an employment contract. Most employment is "at will," which means you can be terminated at the discretion of the management.
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Make certain your services are unique and highly valuable to the company before negotiating a contract.
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Be realistic in your demands. If your services are in demand and your work can make or break a company, a golden parachute is in order. Otherwise, even if you're the world's most charming receptionist, don't expect one.
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Expect to link your employment and compensation to company performance. Your contract should spell out specific benchmarks that, in turn, tie directly to your compensation package.
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Recognize that, in exchange for specific benefits, such as a severance package, you will be expected to give up certain freedoms and flexibility. Don't expect to leave without notice to go to a competitor without facing a lawsuit.
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Expect to waive your rights to a wrongful termination suit in exchange for a severance package.
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Tips & Warnings
Don't sign or negotiate a contract without consulting an attorney specializing in employment law.
Remember, an employment contract is legally binding for both you and your employer.
