Strategic Severance Packages

Many organizations fall into the trap of doing every termination the same way. Perhaps he always offer a lump sum payment, or salary continuance. or otherwise. However, the law allows employers to decide whether they will provide working notice, salary and benefit continuance, a lump sum payment, or some combination thereof. In some cases, it will be appropriate to provide a period of working notice. This can often be effective in periods of transition, such as where a department is being shut down and the members of the department are needed to help with the process.

Rather than simply throw money away for nothing, we encourage our clients to consider every termination and assess the most strategic way of approaching the dismissal. In some cases, you may have a long-term employee that will be entitled to extensive notice or severance. However, they may be highly employable, and it would make sense to structure the package so that their entitlement is limited if they find new work quickly. You can also in finding new work, as this will be to your advantage as well.

After we assess your potential obligations to be soon to the soon-to-be-dismissed employee, will also explain the options to you, along with the pros and cons of each. That way, you can make an informed decision.