Should I Hire an Employment Lawyer to
Review your Severance Package?
We get a lot of calls from
people who have been terminated from their employment wondering if they should
hire a lawyer to review their severance package. A severance package can be a
very important legal arrangement with lasting consequences for a person’s
career and financial well-being.
Assessing a severance package
requires a proper intake interview to determine all of the relevant variables
and factors that should go into a severance package. I have yet to see anything
on the Internet that can provide this advice in a meaningful way to a person
due to the number of variables. This does not mean that the lawyer has to
undertake a detailed analysis of case law in every circumstance. Most experienced
employment law lawyers can provide an opinion relatively quickly after a proper
intake interview. In other words, the lawyer can usually render an initial
verbal opinion at the end of an initial consultation. It is normally a
preliminary opinion without the aid of legal research, but a range can be
provided with some accuracy if you get an experienced employment law lawyer.
The Internet is one of the
greatest inventions of our age, but it does give people the false sense of
security that they can become an expert in any field instantly by reading a
couple of articles on the Internet on a particular topic. Unless and until we
get to the point where information can be downloaded instantly into the human
brain like in the movie The Matrix then there will be value added to hiring
professionals to obtain advice in medicine, accounting, law and just about any other discipline.
Because of the nuances in the
law and the interconnected legal relationship between an employee and employer
it is impossible to advise a client as to whether it is appropriate to hire a
lawyer to further negotiate a severance package until the intake interview is
completed. Sometimes the package on offer is reasonable. Sometimes it is most appropriate for the
employee him or herself to return to the employer to ask for some additional
monies or components to the severance package. Sometimes it is faster and most appropriate for
the lawyer to counter offer.
If a lawyer is hired to
negotiate a severance package then there is no guarantee that that lawyer can
improve the offer. Nevertheless, hiring
a lawyer does send a message to the employer that the employee is serious about
his or her concerns and is taking a professional approach to dealing with the
concerns. Termination can be a difficult process for both the employee and the
person terminating. In smaller or midsize companies the person doing the
terminating and negotiating on behalf of the employer may have worked with that
person in a close capacity for many years. Hiring a lawyer by the employee often results
in the employer hiring a lawyer to represent its interests. Hiring lawyers to negotiate the package
allows the parties to remove any distractions and focus on the issues in an
efficient and meaningful way.
Further, if a person has been
terminated from a large corporation with a sophisticated human resources
department and there is no personal connection between the involved parties
then that employer often appreciates the professionalism of dealing with a
lawyer, even if they do not retain its own lawyer during the negotiation phase.
Hiring a lawyer allows the
parties to focus in on the real and material issues in dispute between the
parties in an efficient manner without dealing with any irrelevant issues that
may unnecessarily complicate the process. I can tell you from years of experience that
no employer wants to pay more than it has to on the termination of an employee.
Further, unless there is an existing and valid contract that deals with the
termination then most employers go in low with any offers. Without a lawyer most employees accept the
first offer and therefore the employer saves money on the package itself and
any legal costs that may be incurred. This does not mean that they put their
best offer forward first. In my experienced most employers leave some room for
negotiation.
Finally, sometimes the
employers are simply not sophisticated in the area of employment law. They make
mistakes and they sometimes dig in their heels with offers that are
inappropriate or even illegal as they may violate employment standards
legislation. Sometimes these employers feel that they know better and make a
horrible offer and dig in their heels. The best advantage to having a lawyer in
this case is that employer will usually go get their own lawyer and that lawyer
will explain to the employer why their offer cannot be maintained law and a
more reasonable offer is forthcoming. The
size of the company does not determine this issue.
Finally, one aspect that
people almost always forget to negotiate on their own is the own
reference. A experienced lawyers knows what
and when to negotiate a reference.
For more information, please contact the law office of
Courtney Aarbo Fuldauer LLP, Barristers & Solicitors at:
Darryl A. Aarbo, Barrister & Solicitor
Darryl's bio: http://www.courtneyaarbo.ca/aarbo.php
Darryl's email: darrylaarbo@courtneyaarbo.ca
Darryl's bio: http://www.courtneyaarbo.ca/aarbo.php
Darryl's email: darrylaarbo@courtneyaarbo.ca
Employment Law page: http://www.courtneyaarbo.ca/employment.php
*The information contained in
this blog is not legal advice. It should not be construed as legal advice and
should not be relied upon as such. If you require legal assistance, please
contact a lawyer*
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