Negotiating the salary and benefits is one of the first things that comes to the minds of most people when they receive a job offer. That's understandable; in such situations, they want to take care of their best interests before signing the contract. But what most people don't realize is that salary and benefits aren't usually the only negotiable aspects of employment. On the contrary, it is possible to negotiate a layoff package.
But to negotiate this package, it's important to understand what it should include. In this article, we'll discuss a standard layoff package, covering what it should entail and everything else you need to know about it.
Elements of a Layoff Package
A typical layoff package should include the following:
The Severance Pay
The amount of severance pay you may be able to negotiate will depend on several factors, such as how long you've worked with the company, your position at the company, and the impact of the job loss on your lifestyle. In most cases, employees are offered one to two weeks for every year worked. However, as mentioned before, this amount could be more depending on the circumstances.
It's always advisable to negotiate at least four weeks of severance pay for each year worked. You can even opt for a higher number and find out what your employer thinks.
Retirement Plans
It's also important to ensure that your retirement plan is included in the package. The specifics of the retirement plan will depend on your employer's policy and state laws. For this reason, ensure you obtain a copy of your employer's policies and then have them reviewed by an experienced attorney.
Insurance
You may be able to extend the insurance coverage provided by your employer as you look for a new job. This extension might cover disability, health, life insurance, and more. In most jurisdictions, employers may be able to extend their coverage for up to 18 months or even longer under certain circumstances. Before signing the package, make sure you find out what will happen to your insurance coverage once you part ways with your employer.
Recommendation Letter
You may also ask your employer to write you a recommendation letter. This will come in handy when looking for a new job.
Company Property
If you're in possession of company property, such as a laptop, make sure you find out what the company wants you to do with them. If they want you to keep it, you must obtain this consent in writing. The last thing you want is to be accused of illegally possessing company equipment and then fail to prove that your former employer allowed you to do so.
Eligibility for Unemployment Benefits
You may be entitled to unemployment benefits when you lose a job. However, to receive these benefits, you must meet certain eligibility requirements. Most of these requirements are the same regardless of your state. That said, many states have unique requirements every individual must follow when applying for unemployment benefits.
Generally, to be eligible for unemployment benefits, you must:
- Have worked a certain number of hours a year – this requirement varies from state to state
- Have worked in the state for a specified period, usually the last 12 months
- Have met your state wage guidelines for individuals applying for unemployment benefits
- Be seeking work even as you receive unemployment benefits
- Be able to work
- Be willing to work immediately when such an opportunity arises