Whether due to restructuring, downsizing, individual circumstances, or a choice to retire, navigating the legal nuances surrounding severance negotiations can be daunting. Severance negotiations are a delicate process, and Maryland law doesn’t make it easy for departing employees to understand their rights so they can protect their interests. Ellison Sadri understands that severance negotiations are complex both legally and emotionally, and stands ready to be your unwavering ally in the severance negotiation process, ensuring you reach the best possible outcome.
What is Severance Negotiation?
Severance negotiation is the process by which an employee and employer come to an agreement regarding the terms and specifics of the employee’s departure from their role, eventually reaching what is known as a severance package. Severance packages serve as an essential bridge for employees, ensuring a smooth transition into the employee’s next role or retirement. This agreement often includes critical factors such as financial compensation, the continuation of benefits, and delineates the rights and responsibilities of the employee and employer moving forward. The severance negotiation process is designed to protect the interests of both the employer and employee, easing the burden for employees transitioning out of their roles.
Under Maryland law, employers are not required to offer severance packages. However, many employers offer severance packages as a gesture of good will, to ensure that confidentiality agreements, non-compete clauses, or non-solicitation clauses are in effect moving forward, and to mitigate future legal risks. However, because there is little statutory guidance regarding severance negotiations, employees are often left vulnerable and at a disadvantage, especially when facing negotiations with an employer who has a dedicated legal team on retainer or on staff. That’s where the guidance of an experienced Maryland employment law attorney becomes crucial to ensure your rights are protected and you see the full extent of the benefits you’ve earned.
What Can Be Achieved Through Severance Negotiation?
Severance negotiations, when conducted effectively, can result in a wide range of favorable outcomes for the departing employee. The terms and conditions of severance agreements can vary significantly, depending largely on the nature of the employment, company policy, and industry standards. However, some of the most common terms that are negotiated include:
- Severance pay
- The continuation of salary and benefits
- Stock options and company equity
- Confidentiality agreements
- The duration of any non-compete and non-solicitation clauses
- Future references
- The timing of departure
- Outplacement services
- Return of company property
- Legal releases
Why Hire an Attorney for Severance Negotiation?
While it’s not a legal requirement, having a skilled and seasoned attorney by your side can significantly increase your chances of achieving a favorable outcome in severance negotiations. Some of the most compelling reasons to hire an attorney for severance negotiations include:
- Legal Expertise. Maryland employment law is complex and nuanced. It’s hard to understand the law, let alone recognize when it is on your side and can benefit you in severance negotiations. An experienced attorney can guide you through the severance negotiation process, ensuring you are aware of the legal landscape, your rights, and your options at every juncture. The attorney will identify whether your legal rights were violated during the course of your employment and fight for a remedy. Your attorney can leverage their legal knowledge to ensure you receive everything you are entitled to by law in your severance package.
- Employment Law Experience. Successfully navigating severance negotiations requires more than legal know-how: it calls for experience. Chances are that your employer and their legal team are skilled and experienced in the art of severance negotiations, and will have tricks and tactics up their sleeve to minimize your rightful severance package without you even realizing that they were working against you. After all, even the kindest and most genuine employers still need to look out for their bottom line. That’s where your attorney becomes an invaluable asset, demanding a severance package reflecting your tenure, value, and contribution to your employer’s successes.
- Negotiation Skills. Armed with a comprehensive understanding of your legal position entering negotiations, your attorney will collaborate with you to devise a strategic approach to negotiations, tailored to your unique circumstances, needs, and goals. When you have a skilled and strategic negotiator by your side, you can maximize your financial benefits in severance negotiations.
- Upholding Your Rights and Weighing the Risks. Often, accepting a severance package requires the departing employee to waive certain legal rights or abide by non-disclosure or non-compete clauses. These decisions, which may seem boilerplate on the surface, can have a profound impact on your career moving forward. An experienced Maryland employment law attorney can conduct a risk assessment and advise you of the future implications of these agreements to determine the best course of action. Your attorney’s objective in severance negotiations is to ensure that your rights are protected throughout the process, keeping your best interests at the forefront of the discussion and preventing any future legal issues.
- Emotional Distance. Leaving or losing a job, whether voluntarily or involuntarily, can be emotionally charged, making it difficult to think rationally during the severance negotiation process. After all, this negotiation is the culmination of years of your time, energy, dedication, and service to your employer. An attorney can maintain objectivity and professionalism while negotiating for your best interests.
Your Essential Legal Ally: Contact Our Experienced Maryland and DC Area Severance Negotiation Lawyer Today
You don’t have to navigate the complexities of severance negotiations alone. Having an experienced attorney by your side can greatly increase your chances of securing a settlement package that accurately reflects your tenure, value, and hard work. Trust the skilled and seasoned employment law team at Ellison Sadri to guide you through the process, ensuring you understand your rights and options every step of the way. Contact us or call us at (410)-974-6000 today for a free and confidential consultation with one of our attorneys.