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.

Difficulty: Challenging

Instructions

Things You'll Need:

• Attorney
• Personal Organizers

1. 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.

2. Make certain your services are unique and highly valuable to the company before negotiating a contract.

3. 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.

4. 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.

5. 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.

6. Expect to waive your rights to a wrongful termination suit in exchange for a severance package.

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.

Who Can Help:

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