Am I Entitled to Severance Pay in Texas? What You Should Know By Dan Atkerson on September 12, 2023

You’ve been with a company for a long time and made many valuable contributions while you were there. Unfortunately, your time with the company has ended. Now here’s a question: are you owed severance pay or a package by that company?

The answer to that question depends on your employment agreement, particularly what’s in writing.

Our law office in Allen, TX, has worked with many clients in and around the Dallas area regarding the terms surrounding the end of their employment. That includes helping executives review severance packages and negotiate a better deal. We’d like to go over some of the basics of severance pay and some of the challenges you could face while trying to get it.

What Texas Law Says About Severance Pay

According to the Texas Workforce Commission (TWC), Texas Payday Law can only enforce the payment of severance based on the written policy or agreement between the employer and the former employee.

To put it another way, as long as your written employment contract includes language about severance pay or severance packages, you are entitled to severance. The details of the pay or package will be determined by the company’s written severance policies or any stipulations negotiated into the employment contract.

Do I Need a Lawyer to Help Negotiate Severance Pay?

If you’re trying to negotiate a better severance package for yourself, hiring a lawyer has a number of advantages. We’ve written extensively about the benefits of hiring a severance package lawyer to review your contract, but to sum it up, a severance lawyer can:

ensure the legality of your severance package
ensure you’re sufficiently compensated
help you avoid obstacles to future employment
note inconsistencies in a company’s severance policies
seek continuation of job benefits as part of your deal

We take pride in helping workers in and around Allen receive what they are owed for their contributions to an organization. If you’ve consistently put in a hard day’s work, our team will put in the work for you.

What if My Company Doesn’t Honor the Written Severance Agreement?

If you have a written severance agreement in place and your company does not honor those terms, you can seek legal action for breach of employment contract.

Since Texas Payday Law can enforce the written severance policies, you and your attorney can use state law in your favor in order to receive the compensation you were promised in writing.

What About Non-Written Severance Agreements? Do I Have a Case?

This is where severance pay can become complicated.

If your employer made an oral agreement about severance pay, you won’t be able to leverage Texas state labor laws to get what you are owed. The same goes for any handshake deals or other non-written communication regarding severance.

While it may be difficult to collect severance payments in these circumstances, you may still have a case. It’s crucial to speak with a Texas labor law attorney about what transpired, the nature of the non-written severance agreement, and even the circumstances of your termination.

Speak with a Texas Severance Package Attorney Today

If you live in the Dallas area and need to discuss your severance package with a lawyer, you can count on our law firm for help. To set up a consultation, contact our law office in Allen, TX. We look forward to working with you and helping you negotiate a package that matches your value and contributions as an employee.