20. Understand Severance

If you're worried about job security, you're not alone. The sluggish economy makes the prospect of further work force reductions a real fear for many.

What happens if you do lose your job? Are you guaranteed severance?

That depends.

As a general rule, your employer is not obligated to provide you with severance pay upon separation. However, there may be state laws, company precedent, terms in your employment contract, or collective bargaining agreements which dictate that you must receive it.

The company does owe you for any unused vacation time, all regular and overtime hours you've clocked but haven't yet been paid for, and any bonuses which you earned and are due.

If you do receive severance, you will most likely be asked to sign a general release in exchange; this indicates that you will not bring any legal action against your employer now or in the future on the basis of wrongful termination. You won't have to sign it on the spot, but you'll probably be asked to return this paperwork the next day. The only exception is if you're 40 years or older: in this case, you have 21 days (by law) to review the document.

The larger the company for which you work, the greater the chance that you'll receive some type of compensation upon separation.

The amount of money you receive is usually determined by the length of time you were employed and/or your job level. Formulas differ from one company to the next. For example, some organizations provide one week of pay for each year of service. Others might base severance pay ranges upon seniority, such as 6-12 months salary for executive level employees, 3-6 months for middle managers, and 0-12 weeks for nonexempt employees.

If you're wondering why senior level employees usually receive a more generous severance package, it's because it is highly likely that it will take an executive a longer period of time to find another job at the same level. Executive and C-level positions are, of course, less plentiful.

Rebecca Metschke is the author of The Interview Edge, a comprehensive career guide for those who are serious about their careers. Gain a professional advantage using proven tips, tools and strategies that will help ensure you're as marketable as you can be. http://www.TheInterviewEdge.com

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