If your employers proposed separation package is unfair, you can ask for more.
You can negotiate on your own, without a lawyer. Lawyers are expensive, and your
employer may resent your bringing an "outsider" into what it regards as a
"family" dispute. You may not want to jeopardize a good relationship with your
former employer by retaining an aggressive lawyer to engage in hostile negotiations.
You may be able to secure a better separation agreement than the standard severance
package your company is offering if the circumstances of your dismissal are unusual.
Employers sometimes are willing to provide a special package to an employee whos had
a long tenure, is facing a particular hardship or has legitimate complaints about the
fairness or legality of the discharge.
If youve lost your job in a mass layoff or a legitimate downsizing, however,
youre unlikely to receive an individually tailored severance package. Additionally,
if youve been discharged for misconduct, your bargaining power is diminished
greatly.
Leverage
Why would your employer negotiate with you on severance after firing you or accepting
your resignation?
- Youre selling "a release," an end to the possibility of a legal
proceeding and expense for the company.
- Youre selling a "non-disparagement" promise not to speak ill of the
company.
- Youre promising "to go quietly." The employer benefits by avoiding
possible damage to workforce morale and the time and expense of disruptive litigation.
Employees have more bargaining power than they realize. Employers are fearful of
negative publicity. They dont like disgruntled former employees contacting board
members, the Internal Revenue Service, current employees and the media. They would like to
end controversy and have terminated employees go away quietly.
But your bargaining power isnt increased merely because you believe the dismissal
was unfair. Youll have to convince the employer that the injustice is gross and
possibly illegal.
Where a violation of law or gross injustice may have occurred, tell your employer
youre considering legal counsel. Make it clear that if the employer is unwilling to
be fair, youll seek legal representation. Employers prefer dealing with an employee
without a lawyer. Hopefully, your employer will realize its better to offer a fair
severance package than to undergo the aggravation, expense and uncertainty associated with
protracted litigation.
Dont threaten to report the employer to the press or government authorities if
you dont receive extra money. Extortion is a crime. In addition, dont declare
war on the employer too early. If youre overly confrontational and hostile, the
employer may become defensive and refuse to negotiate.
How To Negotiate
Negotiation is a two-way street. Ideally, both sides are satisfied with the final
outcome. Focus on the needs and desires of the employer as well as your own.
A typical negotiation may begin with the company offering two months severance
pay. Assume youre age 48 and youve been replaced by a 35-year-old employee.
You have no other evidence of age discrimination. You start the negotiation by asking for
a years pay. The company makes a counteroffer of four months. Eventually you may
settle for six months, because you want to get on with your life.
Negotiations are a ritual, like a dance involving many steps. There isnt a short
cut to reaching an agreement. The following guidelines can help you better manage the
process.
- Negotiate with someone with decision-making authority. Ideally, this executive has the
authority to commit to a deal and is sympathetic to you.
- Be patient. Dont let the employer bully you into a quick decision. Tell the
employer you need time to review any proposed agreement carefully with a lawyer, family
and financial advisers.
- Dont be intimidated by a deadline. Often employers will say you must sign a
release by a certain date, but frequently theyll extend the deadline. Theres
always a risk your employer will pull its offer off the table. However, most will
reinstate it because they want a resolution as much as you do. Some employers will refuse
to increase their offer, particularly when it would set an unwanted precedent.
- Set a realistic goal. Dont give the employer your bottom line during the first
negotiation session. Compromise will make a "win-win" solution possible. To give
yourself some room, ask for more than you expect. However, seeking an unreasonable amount
could sour the negotiations.
- Ask questions to gain information. Seek help from friends and allies within the company.
Request that you be treated at least as well as other employees in similar situations.
- Be persistent. If the employer says "take it or leave it," dont give up.
Keep negotiating. Show the employer youre serious about achieving your goals.
- Stress the fairness of your proposal. Point out the realities of the job market and how
difficult it will be to find a similar position. Guilt can be a powerful motivator.
- Dont be embarrassed to discuss the economic hardships you face, harm done to your
family and what youve lost in income, fringe benefits and retirement savings.
- Prepare a list of accomplishments. Remind the company of your years of faithful service
and profits youve helped it earn.
Wayne Outten, a New York City employment lawyer, advises, "stress your past
service, list your past contributions to the company, mention the gross injustice of the
companys treatment and the practices of the company and industry in similar
cases."
Some employers become angry at terminated employees who ask for more than theyre
offered. When pride, politics and arrogance prevent a rational review of a proposal, even
the best negotiator cant get a fair resolution. The only alternatives are to take
the employers last offer or turn the matter over to an attorney.
Seeking Legal Advice
When youve been treated badly, you have little to lose by being assertive. You
may be too distraught, anxious, angry and emotional to negotiate properly on your own.
Many terminated employees lack the confidence, patience, objectivity, aggressiveness or
experience necessary to confront successfully employer representatives who are
professionals in such matters. They need expert help.
If theres a substantial amount of money at stake and your employer is being
grossly unreasonable, you should seek a lawyer to represent you, says L. Steven Platt, a
Chicago attorney and president of the National Employment Lawyers Association. If your
employer asks you to sign a release of all claims in exchange for severance and you
believe it has violated the law, you should retain a lawyer to negotiate. "Your right
to sue for violation of an employment law is an extremely valuable right and should not be
bargained away lightly," Mr. Platt says.
If you choose to negotiate alone, consider using a lawyer as a behind-the-scenes
adviser or coach. Seek general advice. Negotiate first by yourself. If youre
unsuccessful, ask your lawyer to step in. An attorney is skilled in negotiating and may be
able to secure a better agreement.
-- Mr. Tobias is chairman and Ms. Sauter is an attorney with the nonprofit National
Employee Rights Institute (NERI) in Cincinnati. They are co-authors of "Job Rights
and Survival Strategies: A Handbook for Terminated Employees," which is available
from NERI by calling (800) 469-7374.