IF I ASK FOR MORE SEVERANCE, WILL I LOSE THE COMPANY’S ORIGINAL OFFER?
Laid off employees are often worried that their former employer will retract the original offer off the table if they ask for increased severance or better terms. While it is technically possible that the company could withdraw the offer, it rarely, if ever, happens. In fact, in the multitude of severance agreements the Spencer Scott lawyers have negotiated, no employer has ever withdrawn its original offer. A few have ultimately refused to negotiate but virtually all have extended the time period for the former employee to accept the original offer.
Why do employers not withdraw their original offers when an employee demands more money? Companies offer severance to get a former employee to release his or her claims against the company. In other words, employers want to make sure the former employee does not sue them or file a charge with the EEOC. If the employer withdraws the offer, the employee will have no choice but to sue. And companies do not want to have to fight lawsuits filed by former employees. Even if they are convinced they did nothing wrong, lawsuits are expensive to fight.
A piece of advice. The earlier you contact a lawyer to work on your behalf to increase your severance, the more success you will likely have. Employers contacted the day or two before your severance offer expires often refuse to either negotiate or to extend the time period of the offer. Employers contacted at least a week before the deadline, in Spencer Scott’s experience, have always extended the time period for consideration of the original offer and most have negotiated an increase.
The Spencer Scott lawyers can evaluate whether you have a basis to potentially increase the amount of severance you receive in a free phone call. We can help you decide whether to try to increase your severance or get the severance terms changed (including potentially detrimental non-compete clauses). If you then decide to hire Spencer Scott to help you get with your severance deal, then we will immediately start negotiations with your former employer. We will always consult with you first to keep you fully advised and to insure that you are on board with the work Spencer Scott does on your behalf. And we will do that work at no cost to you unless we obtain an increase in severance for you over the amount you were initially offered.