What Your Severance Package Can Include

There are a couple instances in which you are entitled to receive severance pay – if you’re being laid off due to a company closure, or if you were led to believe you’d be paid severance as stated in a written contract or promise, you should receive some form of severance. In this blog, our Chicago employment law attorney explains what your severance package may include.

Pay

This is perhaps the most obvious component of a severance package – but the amount of pay you receive in your severance package may vary. A rule of thumb many companies follow is to have a set amount, such as a week or two of salary, for every year of employment.

Insurance Benefits

In some cases employers may offer to pay insurance coverage for a certain amount of time after an employee is let go. Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), some employers continue coverage if they initially offered group health coverage at hiring – but that is not to say that employers are obligated to foot the bill.

Outplacement Services

There are a number of services that can be offered to you after termination. Whether it be counseling on career goals and job skills or seminars that provide tips on resume writing, your severance package may include some type of outplacement program that helps you find your next job.

Unemployment Compensation

If you were fired for a reason other than misconduct, you may be able to claim unemployment benefits through your severance package. Once you apply for benefits, your former employer will have the chance to argue your application – if the company chooses not to challenge your application, you can start receiving benefits.

If you need assistance in reviewing a severance agreement, you should enlist the legal help of a Chicago employment lawyer from The Prinz Law Firm. At our firm, we work tirelessly to help you seek the resolution you deserve. Call us today at (312) 212-4450 to schedule your free consultation.