Short answer: Probably not.
Here’s the scenario. Company lays off employee. Company offers employee $25K severance. Employee believes he/she should get more than $25K, hires lawyers to negotiate, but is afraid that Company will respond by taking the original $25K off the table.
Will the Company pull the offer? It is possible, but not plausible. Let’s break it down:
1. It is technically possible that the Company will pull the offer. When Employee negotiates, he/she is, in fact REJECTING the offer that has been made by Company and making a counter offer. Well, if Employee REJECTS Company’s offer, then that offer has been rejected and is, technically speaking, no longer on the table.
2. It is not plausible. Company offered Employee money to go away peacefully and not bother them anymore. Why on earth would it respond to a request to negotiate by withdrawing an offer? If Company pulls the offer, Employee has no choice but to sue – something Company was just willing to pay Employee not to do.
Granovsky & Sundaresh has negotiated hundreds of severance agreements. Nearly every new client asks us whether the company will pull their offer if they negotiate. It has never happened. This is not to say that the Company will necessarily increase their offer, or even be willing to negotiate, but it does show that, much more often than not, just negotiating a severance agreement will not result in the company withdrawing an offer it already made.
With offices in New York City and Cleveland, Ohio, Granovsky & Sundaresh PLLC specializes in negotiating severance agreements for employees. As of October 2016, we have improved the severance of 92.1% of our clients. Please call or email today for a free initial telephone consultation.