Finding out you've been laid off can be devastating, but with an adequate severance package in place it may help ease some of the financial pressure and provide essential resources to quickly find new employment.

Severance packages usually include cash as well as continuing health insurance (such as COBRA coverage), vacation pay and accrued time - though there's often much more wriggle room for negotiation beyond these items.

Ask for a specific type of assistance.

A severance package goes beyond simply money they give as parting gifts - it may include unutilized vacation or PTO days and any compensation earned, such as non-compete clauses that restrict future job searches in your field, depending on state laws and employer policies. Furthermore, negotiations may or may not even be possible over your severance package altogether.

Before beginning severance negotiations, make a list of what you would like specifically and prioritize accordingly. Health insurance coverage is especially essential, and COBRA allows terminated employees to maintain company-provided health plans for 18 months - though any associated premium payments must still be covered by them.

If you own stock options or restricted share units, ask to have your vesting schedule expedited or request that your employer allow an early exercise of shares so as to minimize tax obligations. Negotiations is another possibility here - company equipment or letters of recommendation might be possible too! You should always approach negotiations calmly and professionally even when upset about being laid off; angry outbursts only harden an employer's stance and reduce flexibility during negotiations. An experienced employment law attorney in Memphis can help identify any leverage you possess and negotiate an improved severance package for yourself and/your employer/coalition partner(s).

Ask for a specific amount of time.

Divorcing can be an emotionally wrenching experience, and negotiating your severance package can help lessen its effects. After working hard at your previous company, you are entitled to fair compensation as you search for new employment.

If you want your employer to increase the size of your severance package, threatening a lawsuit is unlikely to do the trick. Even if they committed unlawful termination or discrimination against you, they're unlikely to offer more in your payout until there's more evidence supporting these claims and it is in their best interests for doing so.

Once laid off, employers typically call a meeting to discuss your pay and severance package. To prepare effectively for this meeting, take notes during it and allow ample time before signing any agreement. It can also be useful to compare severance packages among similar workers laid off at around the same time and see if you can negotiate for more.

Prepare yourself for the possibility that your severance agreement may include a non-compete clause requiring you to not work in your industry for a specified amount of time. If that concerns you, request a letter describing all agreed-upon terms and conditions to prevent any miscommunication between parties involved; alternatively consult an attorney so your rights are fully protected.

Ask for a specific amount of money.

Although being laid off is upsetting, try approaching the negotiation of your severance package as a problem-solving exercise. Prioritize what items should be included in your agreement - this will help focus and guide your negotiations more easily.

For instance, if your employer offers two weeks' pay for each year worked, you could attempt to negotiate an increase. There is no legal formula dictating severance packages; each situation differs and demands should remain reasonable; otherwise your employer could pull their offer of severance altogether.

As well as receiving payment, your severance package can include benefits beyond just pay. Many larger companies provide outplacement services for employees being laid off, including career counseling and resume writing assistance. You could also ask the company to continue contributing to your retirement account until you find new employment.

Keep in mind that any benefits received as part of a severance package from your employer may be taxed, so plan accordingly. If negotiating over a lump sum payment, try asking that it be split into installments to save on taxes at year's end.

Ask for a specific number of weeks.

As part of their severance packages, companies usually include noncompete agreements stating you cannot start your own business or work for competitors within a set time period post-employment. This is often considered an important measure.

Companies provide severance packages in order to reduce legal risks such as discrimination, unpaid wages and wrongful termination claims. By resolving potential legal issues before they occur, businesses can save both time and money in potential legal fees.

Before discussing your severance package terms, take some time to determine your needs from such an agreement. Create a prioritized list to guide negotiations - for instance if health insurance coverage and its employer contribution towards costs is something important to you, ask about extending it during your severance period.

Think carefully about how taxation will impede your severance payment. A lump sum could potentially put you into a higher tax bracket; thus it might be wiser to negotiate for smaller payments over time.

Attitude plays an essential part of negotiation; emotions should not enter the dialogue. Being upset or mad could result in poor negotiations that lose leverage for you. By remaining focused and rational during discussions, you're more likely to improve on their original offer and demonstrate you aren't making unreasonable demands.