Losing a job unexpectedly creates stress, but a fair severance package helps ease the transition. If you believe your employer wrongfully terminated you, negotiating severance gives you a chance to secure compensation. Understanding your rights under Texas law strengthens your position.
Review your employment contract
Start by checking if you have a written contract outlining severance terms. Texas follows at-will employment rules, meaning employers can terminate employees without cause unless a contract states otherwise. If your contract includes severance provisions, use them as leverage in negotiations.
Identify potential legal claims
If your employer fired you for discriminatory reasons or retaliation, you might have legal claims under federal or Texas employment laws. Wrongful termination cases put pressure on an employer to offer a better severance package to avoid legal disputes. Pointing out any potential violations strengthens your negotiating position.
Evaluate the severance offer
If your employer offers severance, review the terms carefully. Look for clauses about continued benefits, non-compete agreements, or confidentiality restrictions. If the amount seems low or the conditions seem unfair, counter with a reasonable request based on your tenure, position, and potential claims.
Leverage unpaid wages or benefits
Texas law requires employers to pay all owed wages, including unused vacation if company policy allows it. If your employer owes you wages or benefits, use them as a bargaining tool. Request that unpaid amounts become part of the severance package.
Request additional compensation
Negotiations extend beyond salary. Ask for extended health benefits, positive references, or compensation for lost bonuses. A well-structured request makes the package more beneficial for your long-term financial stability.
Get the agreement in writing
Once you reach a deal, document all terms in a written agreement. This step protects you from future disputes and ensures the employer follows through on promises.
