Factors That You Should Know About Severance Pay and Severance packages
Severance Packages is perhaps one of the most uncomfortable topics as it is closely associated with termination. However, this unpopularity of the topic keeps most people unaware of the significantly important factors about severance packages.
The lawyers of De Bousquet PC think that both the employers as well as the employees should be aware of the severance package. This understanding will help both of them to stay clear from making the basic mistakes that most people tend to make. Read the following information, get a handle on the concept, and try to find out if you are being treated properly the next time you get a severance package in your hand.
Read Also – Rights of Terminated Employees in India
What Is a Severance Package?
The severance package is a certain amount of money that companies pay to their employees depending on the length of the working tenure. It is generally handed out to the employees if he or she gets terminated without any fault on their part. The entitlement that the company offers to the employee also depends on the company and the relationship it has with the employees.
This is where the catch lies. Employers often offer a low-value severance package to the employees. As the documents that outline such packages are complex, it is hard for a common person to understand whether he or she got the benefit that they deserve.
The experienced employment lawyers of De Bousquet PC can help you in that. They can check the documents on behalf of you and determine whether the severance package is adequate. They can also check whether the amount is falling short of the actual amount that you owe upon termination. If you are, then the lawyers can help you to claim wrongful dismissal.
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Facts about Severance Pay
Deadline on Severance Offer
If you see that your employer has put a deadline on the severance package offer, you should ignore it. Always remember that your right to your termination package does not get outdated after 24 hours, 2 days, or 2 weeks. It is a common pressure tactic that employers often use to make the employees accept the poor severance offer.
One week Per Year Rule
Know that there are no such rules about calculating your severance pay. You can use the Severance Pay Calculator available online to find out the amount that you might owe from your employer.
Talk to the Severance Package Lawyers First
You should not sign a severance package without taking to the lawyers of De Bousquet PC. Call the lawyers and talk to them to make sure you are being offered a fair severance package.
Calling Up Ministry Of Labor
Don’t make this mistake at any cost. The ministry of Labor or the Employment Standard Branch only helps you to get the minimum severance package that comes under the employment standards act. The lawyers, on the other hand, can help you to get the maximum severance pay under the common law. If you file the claim with the Ministry of Labor, you lose the right of taking the help of our experienced lawyers.
Termination for Cause
Most of the time, employers try to find different causes for termination to avoid paying the due severance package. The lawyers have the experience to see through the fabrication and prove that those causes are not legitimate.
Calculating The Severance Pay
The factors that affect the amount of severance pay are the salary, employability, bonus, age, length of services, commissions, benefits pension, stock options, etc. Make sure your employer has used these factors to calculate the severance package for you.
Can Your Employer Skip The Severance Pay?
At the time of firing an employee, the employer can choose any of the three options. They can offer the employee with a working notice instead of the severance package. The termination date could be in weeks, months or a year. The employer can pay you the severance package in lieu of the notice period. Some of the employers offer their employees both.
If your company is offering a notice period instead of the severance package, you should get in touch with reputed lawyers. The law years can check whether the notice period is long enough or whether you still need the severance pay after you serve the notice period.
Whether It Is Better To Quit?
The employees in Canada are not entitled to get severance pay if they quit their jobs. However, if you are dismissed from your position, you will get the severance pay that you deserve.
Read Also – Steps to take for taking legal action against an employer for wrongful termination
Can The Severance Pay Be Paid Over Months?
The company can choose whether to offer the severance pay all at once or whether they should pay it over a period of time. However, you can get in touch with experienced employment lawyers to decide the payment method that benefits you the most.
All in all, to make sure you are getting the best severance package from your employer, you have to be focussed and objective. Get in touch with the lawyers of De Bousquet PC to comb through the finer points of the severance package agreement. Make sure not to rush to sign the documents without talking to an employment lawyer first.