Understanding severance packages

An important aspect to consider when you leave your employment is ensuring that your severance packages are what you are entitled to and could reasonably be expected to receive. Severance packages can contain a number of items that can include: any redundancy pay you are due, money in lieu of notice, pension payments, and share options. It is important to understand how severance packages are calculated so that you can assess whether yours is correct before your leaving date arrives. If you are at all unsure of the law relating to severance packages, or how it should apply in your circumstances, an employment solicitor can help you.

You should try to get an estimate of what your severance package will contain as early as possible. If you consequently think this is incorrect, you can take action well before your leaving date arrives. You have a number of rights under employment law that are protected when severance packages are calculated, so if you are in any doubt about your package, you should seek qualified legal advice.

Severance packages may be used in conjunction with compromise agreements. Compromise agreements set out the terms and conditions upon which you agree to settle an issue or the cessation of your employment, on the main condition that you will not take legal action against your employer or pursue a current claim. Note that if you do decide to sign a compromise agreement, you will be giving up the opportunity to object to your severance package. It is therefore vital that you receive legal advice before you sign your agreement.

If you would like to obtain legal advice about severance packages, Contact Law can put you in touch with a local specialist employment / severance law solicitor free of charge. So, if you have any questions or would like our help in finding local employment / severance law solicitors please call us on 0800 1777 162 or complete the web-form above.