Review Your Severance Package
It’s not uncommon for lawyers to request an updated review of your severance pay when the original contract is due for renewal. In fact, many law firms now review severance packages as a part of their routine compensation approval process. In order to prepare and explain your case, a lawyer can use this 7 Reasons a Lawyer Should Review Your severance pay to help justify extending your payout:
1. If you’re a lawyer who is struggling financially, reviewing your payouts for fear of defaulting on payments is simply prudent. While some severance pay lawyer are extremely conservative and reluctant to do anything that might put them at risk for personal financial harm, others have made reviewing payouts a routine part of their work. Reviewing your clients’ payments allows you to see if you’re financially secure enough to continue working with your clients.
This may be the most compelling reason to review your agreement with a client. A lawyer may have a difficult time justifying extending payment to a client. As such, they may ask the client to meet with them in order to discuss how their financial situation is affecting their ability to pay. In many cases, a lawyer may also find themselves in a compromising position with a client who wants more money because their income has increased.
7 Reasons a Lawyer Should Review Your Severance Package
In addition, reviewing your agreement with a client helps you to ensure that it is fair. It is easy for a lawyer to recommend an unfair contract to a potential client. As such, a review team often consists of people who are neutral regarding your case and have no bias towards either you or your firm. Having unbiased review team members makes reviewing your severance pay much easier, especially if you have several different firms competing for your business.
Finally, a review team makes negotiating easier. It is difficult for a lawyer to agree upon a reasonable payment at the time of severance. A review team can help you to reach an agreement without the hassle of going to court. Because the review team members are impartial, they will not advise you to accept a lower payout based on risk. They will instead advise you on a payment that is fair and reasonable.
Lawyers are often offered an exit package when they terminate their legal employment. These packages are designed to help lawyers obtain a lump sum payment when they leave a law firm. However, many lawyers find that the exit package offered to them is not worth the time it takes to review severance package proposals. In this case, it is often best for a lawyer to negotiate a fair and reasonable exit settlement himself. In most states, a lawyer will be required to disclose any outside income when he submits a review of a severance package, so you need to do your homework and make sure you are receiving a reasonable exit payout.