Outten & Golden attorneys review exit packages and advise clients who receive offers of such packages about the complex consequences of accepting or rejecting them. We help clients make that decision and discuss with them the possibility of negotiating better terms, including more severance.
An employer that wants to reduce its workforce will often offer exit packages to induce some of its employees to leave without firing them. These kinds of offers are usually available for only a limited time. They generally provide more severance pay than the standard amount and may include other inducements as well, such as employer-paid health insurance, outplacement services, or extra pension credits to enable some people to take early retirement who would not otherwise qualify.
In exchange for these extra benefits, employers require employees who accept exit packages to give up any legal claims they have against their employers and to other benefits for the employers.