How to Collect Severance Pay

Some employers give severance pay when they let you go from the company in order to prevent lawsuits. The employer will ask you to sign a severance pay agreement. Severance pay is not a wage; it is an amount in addition to wages. It is final pay. Severance pay is not something you are entitled to; it is something the company offers you to protect themselves from legal action.

Instructions

Difficulty: Moderately Easy

1. Understand the law. There is nothing in the law that says an employer must offer severance pay to employees who they lay off or fire. It is entirely up to the employer.
2. Note that severance pay is often a bribe by your employer to buy your rights. If you think the company is letting you go unfairly, don't sign a severance pay agreement. This will interfere with your rights later.
3. Consult an attorney. It's good practice not to sign any agreement without consulting an attorney, but in this case, it's the thing to do since you may not realize what you're signing away until it's too late.
4. Check all the paperwork you signed at hiring to see if there is a severance pay agreement that you and your employer signed. If there is then you are entitled to severance pay.
5. Collect severance pay--if this is a mass layoff and others are collecting severance pay, be sure you get it as well.

Tips & Warnings

• If you are the only one laid off and your employer offers you a severance pay package, you can refuse it and hope to get more money than initially offered.