Do You Get Severance If You Get Fired?

Posted on Wednesday March 05, 2025

Losing a job can be overwhelming, and one of the biggest questions you might have is, “Do you get severance if you get fired?” The short answer is it depends. Severance pay is not mandatory for all employers; however, certain situations and agreements may entitle you to receive benefits or compensation following your termination. This guide from Mara Law Firm, PC explains everything you need to know about severance pay and how to navigate the process, with insights tailored to professionals in the San Diego, CA, area.

What Is Severance Pay?

Severance pay is a financial benefit that some companies voluntarily offer to laid-off employees. Although it’s not a requirement under federal law, it’s traditionally included as a provision in an employment agreement or company policy to provide a financial safety net for these employees.

Severance packages might offer:

• A lump sum payment
• COBRA: Health insurance continued
• Compensation for unused vacation or sick time
• Professional Career Counseling or Outplacement Services

Severance packages vary by employer and industry. They help ease job transitions and may prevent legal disputes.

What Can You Expect in a Severance Package?

A severance package’s contents largely depend on your employer’s policies and employment contracts. Aside from monetary compensation, some employers offer extended health benefits, access to employee assistance programs, or consulting support to help you find another job.

If your severance package includes specific conditions such as waiving your rights to pursue legal action, work with an employment lawyer to ensure you’re making a fair trade.

Contact us now for a free and confidential consultation

message us 619-234-2833

Can You Receive Severance If You’re Fired?

Being fired does not automatically disqualify you from receiving severance. However, the specifics may depend on:

1. Your Employment Contract: If your agreement outlines severance terms, your employer must follow those guidelines.
2. Company Policy: Some businesses openly pay severance to all terminated employees as part of their policies, regardless of dismissal reasons.
3. The WARN Act: Under the Worker Adjustment and Retraining Notification (WARN) Act, employers with 100+ employees must give 60 days’ notice before mass layoffs. If they fail to comply, they may owe affected employees compensation, though not necessarily severance pay.

Most companies are not obligated to provide severance if you were terminated due to misconduct.

What To Do When a Company Refuses To Pay

If you believe you are entitled to severance, but a company refuses to pay, here’s what you can do:

Check the Terms of Your Employment Contract

Review your contract or handbook for language specifying severance eligibility. If terms were promised, highlight them as evidence when discussing your case.

Discuss Your Concerns with HR

Resolve the matter informally by presenting your concerns to HR. Often, disputes can be resolved internally without legal action.

File an Effective Demand Letter

Create a formal request documenting the amount owed, relevant evidence, and a payment deadline. This will demonstrate your seriousness and could prompt a favorable resolution.

Seek Legal Help From an Employment Lawyer

If other efforts fail, an experienced employment attorney can help you assert your rights.

How Is Severance Pay Calculated?

Severance pay is typically calculated based on your salary and length of service. According to the Office of Personnel Management, the standard formula considers:

• One week’s pay for every year of employment (up to 10 years)
• Two weeks pay for each year beyond 10 years
• Adjustments based on age and other factors

How To Negotiate Your Severance

If severance terms are unclear or insufficient, negotiating may help. Follow these steps to improve your odds:

Know Your Legal Rights and Eligibility

Understand what your contract or company policy grants you. Be prepared to reference legal protections like the WARN Act if applicable.

Gather Evidence to Support Your Case

Compile records of your performance, contributions, and achievements to strengthen your negotiations. Written communication from the employer about severance terms will also be beneficial.

Determine What You Want in a Severance Agreement

Beyond base pay, consider negotiating perks such as extended health benefits, career counseling, or unused vacation compensation.

Seek Legal Support

Have an attorney review your severance agreement for peace of mind during negotiations.

Contact Our Experienced California Employment Lawyers to Secure Your Severance

Navigating severance pay can be complicated and emotional. Whether your employer withholds payment or you’re unsure of your rights, getting professional advice ensures the best outcome.

The Mara Law Firm, PC, located in San Diego, CA, specializes in employment law and has a proven track record of protecting employee rights. Contact us at 619-234-2833 to schedule a consultation today and get the support you need to claim what’s rightfully yours.

David Mara

David Mara, founder of Mara Law Firm, PC, is a California employment attorney specializing in wage and hour law and representing injured civilians under U.S. defense contracts. He has recovered tens of millions for workers and contributed to landmark cases like Brinker Restaurant Corp. v. Superior Court. A member of multiple legal organizations, he also shapes California labor laws through legislative reviews. Mara holds a B.A. from San Diego State University and a J.D. from California Western School of Law and is admitted to practice in various federal courts.

At Mara Law Firm, we are dedicated to fiercely advocating for workers who have faced wage theft, violations of California labor laws, or injuries sustained under a U.S. Defense Contract. With decades of experience, our attorneys provide personalized, confidential, and no-cost consultations to ensure the best outcomes for our clients. We bring unmatched expertise to protect your interests and fight relentlessly to secure the compensation you deserve, guiding you through every step of the legal process to uphold your rights and deliver the relief you need.

Contact us now for a free and confidential consultation

message us 619-234-2833