Any employee who wants severance pay when resigning must know what the company policy is before they approach HR or management. While many companies have a severance pay policy that applies to all employees others don't and it may be easier to negotiate with a company that does not have a set policy in place. If you want to ask for severance pay over and above what the company offers you then you need to have a good motivation for it. Make sure you have followed the correct procedure for resigning and be well prepared for your exit interview. If you have contributed significantly to the company during your time there take a record of it to the interview and use it as leverage for severance pay.
Asking for something you want only takes ten seconds of bravery. Once you're in the room or conversation, take a deep breath and start getting the words out. Ten seconds of bravery is all it will take to ask and then two things can happen. They approve and give you what you want, or say "no" and you're no worse than you were moments before.
The best time to work severance pay into your contract is when you’re first being hired. As your income increases, you can continue to negotiate the rate of your severance pay, but generally the concept of severance pay is most easily incorporated into an employee’s contract when they first start off. It can be a red flag to employers if an employee, who’s been working for them for a while, suddenly has a strong desire for severance pay, so it’s best to request it right off the bat during the initial hire.
The best advice to give an employee asking for severance pay is to tell them to gather all the evidence and verify them before claiming severance pay. Severance pay is a benefit that eligible employees can avail themselves of. But, they need to present solid evidence for this. For instance, they have to present pay stubs, taxes, employee awards, and many more that talk about the employment excellence and amount that you’re claiming. If an employee doesn’t have enough evidence then the claim won’t be processed and the employee will face disappointment.
Do your research first. Resigning your job typically doesn’t justify you receiving severance pay, unless it’s promised directly in written language. Keep in mind that different states have different laws regarding severance pay, so if you’ve moved recently, the situation at your previous workplace may not be the same as your current one.
Clinical Director, LifeMD at LifeMD
Answered 4 years ago
The only “tip” I would offer the employee is directions to the door. I have never heard of someone asking for severance pay when they resign, and if this is a new trend, it’s a ridiculous one. We are all entitled to make whatever decisions we have to make about our career, but we have to own our decisions. You don’t get severance pay when you resign, it’s that simple.
Be sure to have all the facts and figures in order to make a solid case. It is also helpful to have a plan in place to receive the benefits you are seeking. Stay organized and keep detailed notes of your communication with your employer, as well as any documentation, to have a solid case for receiving severance pay when resigning.
Depending on the size of your company, you might have to let the employee know that you are unable to pay a severance package because your budget would not allow for it. Additionally, severance pay is not typically offered for employees that are voluntarily leaving their position. If the company has to lay someone off, that is when severance pay comes into the equation.