A severance package includes the benefits, salary, aid, or options that an employee is given when he leaves a job. Of course, not all exiting employees receive severance packages, but many do. In addition to laid off or retiring workers, some who resign or are fired can also receive severance packages. It is important to note that the employer is almost never required to give any kind of severance package, but many companies do it anyway.
A severance package can take many forms, but it often includes some or all of the following:
Payment, which can be for unused vacation, the following months after work termination, etc.
- Continued insurance coverage
- Stock or retirement options
- Aid in finding new employment
It is also important to note that many severance packages come with “strings attached,” meaning that they contain anti-competition clauses. They may also contain provisions that do not allow the former employee to bring a lawsuit against the company. If the employee goes to work for a competitor or sues the business, they usually forfeit their right to the severance package and have to pay it back.
If you have received a severance package and have been asked to pay it back, or you have not received the benefits that you were promised, you may need legal counsel. It can be very helpful to have experienced legal advice when navigating these complicated issues. Contact the Austin employment lawyer of The Melton Law Firm at (512) 330-0017.