These agreements are not mandatory. A worker is not entitled to a severance package unless the employer has a contractual obligation to do so. These agreements are typically given, if at all, to the former employee with limited time for review by the former employee.
These agreements may contain critical waivers and releases that once executed by the employee may impact the employee years later. The agreements may release potential health and discrimination claims, and may well impact the employee’s right to receive unemployment compensation.
Pennsylvania significantly changed its unemployment compensation law as of January 1, 2012. Whereas prior to January 1, 2012, severance payments made no difference in a person’s unemployment compensation, under the new law any severance agreement entered into after January 1, 2012 resulting in payments over approximately $18,000 will result in an offset against your unemployment compensation benefits.
The loss of a job creates tremendous stress for the newly unemployed. When the displaced worker is then confronted with a lengthy legal severance agreement, it can be overwhelming. It is important to remember that a severance agreement terms can be negotiated, and an experienced unemployment lawyer's assistance is critical as you explore your options.
There is no substitution for consulting with one of the employment attorneys at Amori & Associates, LLC to review your options, advocate your interests and negotiate with your former employer for the best possible resolution for you.
Call Amori & Associates, LLC for a no obligation consultation at (570) 421-1406.