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When your company is downsizing, you may be left with employees looking for new jobs. If you’re not prepared to offer continued employment, you’ll want to be on your toes to eliminate any potential severance disputes before they arise. With some forethought and planning, you can help your employees leave your company with their value intact. Here are some key tips for avoiding a severance dispute as an employer.

Communicate Clearly and Often

To avoid any confusion or misunderstanding, make sure all employees are aware of the company’s plans for the downsizing process. Be as clear and concise as possible. Having employees sign a document detailing their severance expectations will also help to avoid any misunderstandings. If an employee has questions or concerns, address them head-on. Have employees sign a document outlining the organization’s downsizing process and their rights as employees, including their right to severance pay and the expected timeline for receiving it. If you have a formal policy regarding severance, explain that, especially if the policy is different from your standard termination process. Make sure you convey your policy details in a way that doesn’t come off as cold or bureaucratic.

Allow for Flexibility

Be flexible regarding your approach to employee termination and severance discussion. Accommodate requests for legal assistance, time off for job interviews for new roles, etc. The more flexible and accommodating you can be now, the easier any further negotiations will be for everyone.

Don’t Try To Low Ball Them.

Severance pay is meant to help employees cover their expenses as they search for a new job. It’s not meant as a perk or a gift. Employees should expect to be paid their standard wages for the time they’re looking for a new job. Employees should also understand that they are not entitled to receive a severance package equal to or higher than their previous salary. If you’re offering a lower payment, you decide to make it. You’re not breaking any laws, so feel free to set your expectations for the payment. But be honest and transparent about your expectations from the start.

Be Open to Negotiating

If you’re offering a severance package, you have the right to set the terms. You can choose to offer fixed wages for a set period, a percentage of their salary, or both. If you’re open to negotiating the terms of your severance package, you may be able to agree with an employee that’s more reasonable than they expect. Being flexible can help you to avoid an employee filing a severance dispute.

Document Everything

As with any legal matter, it’s good to have a few documents in place to help you avoid a severance dispute. In particular, you’ll want to have a clear timeline detailing the expected timeline for finding a new job. You might also want to have a timeline detailing the anticipated timeline for receiving payment for any unused vacation time or accrued sick leave. Depending on the circumstances of your contract with your employees, it might be in your best interest to keep these documents separate from your employee handbook.