Aware that layoffs were planned in the wake of a merger at his company, Barnes offered to voluntarily leave. By doing so, he was able to negotiate a three-month severance package that turned out to be six times more than what most of his colleagues got when they marched off to slaughter a few weeks later. The only reason you stay in this climate is if you really like your job, think your company has a future and you don't think you are vulnerable. Under law, employers generally have no obligation to provide severance pay unless there is a severance plan or a contractual obligation. The Worker Adjustment Retraining and Notification act, or WARN act, requires employers to give 60 days notice to workers in large-scale layoffs.
Smart companies see severance pay as the cheapest insurance they can buy.
In exchange for payment, employees are asked to sign agreements that they will take no legal action against the company. Increasingly, these agreements contain clauses that prohibit the former employee from bad-mouthing the company or raiding its customers or employees. A lot of people don't want to go out with a hostile situation. They want to have a good feeling. But employees who believe their rights may have been violated or that a company is being unfair should consult an attorney, Tobias said.