When you start working any job, there are various pieces of material to get familiar with. To keep things as simple as possible, you might want to go over your given contract. This document will outline all sections that are important, from job duties, to compensation. In regards to the latter, being paid accordingly will matter at all periods in your tenure.
Don’t just think that the end of your term means compensation won’t matter. In actual fact, being paid what you are owed matters greatly, in accordance with your contract. Being let go of your job, for example, usually means you are entitled to severance pay.
Let’s learn more about what severance pay is:
What is severance pay?
Severance pay can oftentimes be considered to be many things, depending on who you speak with. In the most general of senses, the phrase relates to the end of your working arrangement with respect to compensation. If you were dismissed from your role without cause, you are likely entitled to some form of compensation.
As mentioned previously, your contract should be able to state how severance will work. It is imperative to go over this document, so that you understand how much you will be given. That way, you will be paid no less than you are worth for your role in the workplace.
Severance pay entitlement
Sometimes, the working arrangement may not always result in severance pay at the end of your tenure. That is why it is important to determine whether or not you are actually qualified for the compensation. In some cases, a contract will state that you must have been with the company for a specified number of years.
This length of term can vary, depending on where the company is located, or who the company is. At other times, there must be a certain number of people working in the business, or there must be a determined payroll figure established. If there are any discrepancies, a top employment lawyer can help you from a legal standpoint.
Calculating severance pay
Severance pay can be determined through using a very simple formula. In most cases, the formula revolves around how much you make, as well as how long you were in the business. For example, the figure you make each week during your stay must be known, to kickstart the process.
Moreover, your length of term, right up until dismissal, will be the second most important part of the calculation. Multiply the weekly figure by the length of term, and you should come up with an accurate number for compensation.
Receiving severance pay
You will not always receive your compensation once business ties are immediately severed. In most cases, under the law, you will receive your compensation within seven business days. Or, you might receive the money on your next payday.
Contrary to popular belief, the severance pay received usually arrives in one lump sum figure. However, it is important to figure this out with your employer first. Some severance packages are paid in instalments, depending on the nature of the business relationship.
Severance pay accuracy
Should your working relationship be in good standing, there should be no issues with the compensation you receive. However, the amount you receive can sometimes fall short of the intended mark. Next steps will then become pivotal, when you are trying to get the right amount.
Severance pay lawyer
For all intents and purposes, it is in your best interest to have a lawyer read over your severance package details. Having a professional, second opinion matters, especially if you are owed more money. Being let go of a job doesn’t have to result in being owed less compensation after all!