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Special Careers Issue
W O R K S H O P  
Recruiting & Training

The Fine Art of Negotiation

  August 6, 2001
  By Maria Schafer

Severance: A Not-So Pleasant Negotiation

Losing a job is often unexpected and can be emotionally jarring. Here's how to negotiate a fair severance package:

  • Listen to what, if anything, the company is offering and prepare a list of your salary, cash-oriented benefits--401(k) plan, profit sharing, loans, housing and car allowances, child-care vouchers, stock grants--and noncash benefits--health benefits, tuition reimbursement, stock options.

  • Get your request for pay in quickly because severance is budgeted.

  • If you are working on a contract basis be sure the terms of your agreement are in accord with the actual severance provisions.

  • Seek the longest possible term for base salary and health benefits continuation, as well as access to the company's phone system and other office services during the severance period.

  • Put your severance proposal in writing.

    Note that if you are terminated for poor performance or other reasonable cause, you are not entitled to severance (though some states prohibit summary termination except for extreme circumstances).


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