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Negotiating severance agreements, things to know

Those who find out that they are being released from employment and who are offered severance have a lot of things to consider before signing the agreement given them. Most companies, whether in Colorado or elsewhere, will do the best they can to give as little as possible. This is why reviewing severance agreements and seeking legal counsel to help negotiate the terms of such contracts is important.

What is usually in a severance agreement and how will compensation be determined? A severance agreement contains quite a bit of information, including reason for dismissal, a separation agreement, compensation amount, outplacement services and information about how compensation is to be paid. Total compensation may be paid in a lump sum or over time. How much will be granted varies per company, but common factors used to determine compensation include:

  • Length of employment
  • Position held
  • Reason for dismissal

Negotiating more into one's severance agreement can prove to be a challenging task. There will be certain things that companies will have no control over -- such as insurance benefits, -- and others on which it will refuse to bend. This does not mean it is not worth trying.

An experienced employment attorney can assist those residing in Colorado who have been dismissed from their jobs with negotiating severance agreements that will best serve their current and future circumstances and compensate their time and commitment to their former employers. This is something that can take time. However, it may be considered time spent well if negotiations prove successful in the end.

Source:, "Seven Considerations When You Negotiate Severance", James Anderson, Accessed on March 8, 2017

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