The Pros And Cons Of Severance Packages

July 11, 2018

With the recent economic recession, many businesses are opting to downsize. Whether that entails budget cuts, expansion holds, or large scale layoffs, many employers are still struggling to stay afloat. If you have been the unfortunate victim of a company-wide layoff, your employer may offer you a severance package. Although seemingly well intended, some severance offers have drawbacks that you may not have considered.

What is Stellenausschreibung ?

For many employers, layoffs are an easy way to significantly reduce spending. When they opt to go this route, employers may offer their recently “let go” workers a check that is intended to supplement their income while they search for other work. A severance package’s worth varies from company to company, as well as from employee to employee. Employers may consider the following circumstances when determining how much severance to offer:

• Pay level/salary received prior to termination

• Duration of employment

• Position at company

• Performance

• And other pertinent factors

It is important to remember that although you may feel like you deserve severance, employers are not required to provide one in the event of a layoff.


The perks of being offered a severance package are fairly obvious. If you have recently lost your job, any money coming your way is advantageous. Oftentimes these packages are equivalent, if not more than, a paycheck’s worth of compensation. As you search for a new job, severance can help you sustain your lifestyle and support your family while you are in-between jobs.


The disadvantages of severance packages are a little less apparent. A common complaint made by recently “let go” employees is that the paperwork for acquiring a severance check is tedious and lengthy. In many cases, paperwork processing can delay your severance check for weeks to even months. While you are looking for a job, every day matters. Going without income for any period of time may compromise your ability to keep up with your financial obligations. Additionally, accepting severance may disqualify you for receiving unemployment benefits.