Today, a time has come when people prefer to start up
Their own business and be their own boss, rather than working under someone. A lot of these people, just quit their job when they get an idea and start setting it up.
Quitting your job, and just starting up your own business is not a great idea. Rather as an employee, you should know about some laws which will benefit you, even after your employment ends.
One of those amazing laws is the severance pay law. Instead of just quitting the job, one should get laid off with severance pay. Many people do not opt for this because of their fear to negotiate with the company.
Recently, due to the coronavirus pandemic, many people were actually fired without providing them any support, just because the company was out of budget. This happened to people across the world.
By asking for severance pay, you can actually have a financial runway to do what you want to do, without having a huge load on your head. This will also help you leave your job with having money in your pockets.
Getting deeper to know about laying off with severance:
Let us get some knowledge about this. Laying off with severance, arm you with the wisdom to level the sporting field with your organization, and saying sayonara on your individual terms.
Now, after knowing about laying off with severance, let us get into its negotiation part. During the pandemic, people just accepted their end of employment without having a penny in their pockets. Why?
It was just because of their fear to ask for the negotiation of severance pay or even asking for laying off with severance. What’s the main concern of companies related to these terms for their employers? Let’ see.
Main concerns of the companies about their employer
Essentially, any company will provide some kind of benefits to you as their employer upon your departure if you show that you understand their concerns.
Also, if you can help out the manager of your organization to make a decision for someone and save the needy person’s job, you attain a more immeasurable possibility of receiving a severance package.
The reason why getting laid off is better than quitting?
If you quit your job, you will not be eligible for getting any kind of financial support from your Ex-organization. The basic logic behind quitting, shows that you do not need money.
Even if you decide to start up your own business, you should first definitely have a magnate account balance. You have to obviously use up your savings on starting up the business, right.
How severance help in this situation?
Just, for instance, imagine you have indulged your idea, time, and savings on starting up your business. But even after exhausting your savings, the business is struggling to get off the ground.
In this situation, if you had gone for the severance pay at your previous company, it might have helped to save up some of your savings. Which further helped you to stay up with your business idea.
Also, depending upon the years you served, you might have got health premiums too. For example, if you have served for three years, you might have got at least three months of salary and health insurance premiums.
Severance pay serves as a financial tip for a lot of people out there, who are planning to start their life on their own terms and not under the rules and regulations loaded on them.
What makes an employee suitable for getting a severance?
A lot of you guys will have a question in your mind that if a person has served a company for a very long time and has given great performances, why would the employer want to give that person severance?
The answer to this question would be: The more valuable you are, the more comfortable it is to negotiate a severance because you don’t want to just quit and leave your employer in an unstable condition.
Severance is applicable in both situations: Whether it’s the situation where you are getting fired because of a budget issue or, you want to leave on your own terms.
It is a really good option, to rather come out of your company with money in your pockets than to come out just quitting and not having anything to financially stand in the market to take yourself ahead.
” How to Engineer your layoff? “- An amazing book to read before just quitting
You should never just quit, instead should get laid off with severance pay.
The book has made this statement clear in a very impressive way. People having issues with their job and start-up should read this.
The book consists of different case studies, refreshed resources, and more insightful data points. The book is a result of robust research and conversation with experienced people.
An example of a famous person who took the severance
Jeff Bezos, the owner of Amazon, has shared his experience in an interview of getting laid off along with severance to start his business of selling books online.
Obviously, you require family support for your business to start up because it is kind of risky, But if you can get financial support from your previous company it is even much better.
Negotiating the severance accordingly can help your transition to a new job, reduce stress, and perhaps provide a nice financial cushion.
Some important points you should know about the severance package
The severance pay is basically offered for 1-2 weeks for each year you have worked for an organization, but it can be more. If the job you are losing can create a financial hardship, discuss it with your former employer.
In general, you should try to get four weeks of severance pay for each year you worked. Middle managers and executives usually receive a higher amount.
Some officials, for example, may get pay for more than a year. So, basically, you should have knowledge about all this and should not fear to discuss and negotiate about your severance rather than quitting.