What is one of the most important terms in a severance package?

I would have to see the severance to see if the terms are fair.

There are two main types of Severance Agreements. One is signed at the beginning of an employment relationship and the other is signed at the end. When a Severance Agreement is signed at the beginning of an employment relationship, "severance" is what the employer promises to pay (above and beyond the employee's regular wages) when employment terminates i.e. when the parties "sever" ties. The sum of severance pay is typically calculated by how long the employee had been employed by the company at the time of separation. Before signing this type of Severance Agreement, a prospective employee should be sure that it clearly defines all the important terms and conditions. For example, the Severance Agreement may address how long the employee must be employed to become eligible for severance pay, how long after termination the severance pay will be paid, whether severance pay will be paid in a lump sum, and what could cause the employee to forfeit severance pay.

If you are still considering a severance agreement, I strongly recommend you consult with an attorney first to review the agreement, give you feedback, and assist you in negotiating it.

Severance payments are taxed as ordinary income.

Hello. Thank you for the opportunity to respond to this question. In general, NO, once a severance agreement has been signed by both the employer and the employee, the agreement cannot be modified. However, if the employer hasn't yet signed the agreement, and only the employee has signed the agreement, the employer may suggest modified terms as part of the negotiation. Also, if the agreement has been executed by both parties and the agreement contains a revocation period, the employee (or possibly the employer) may still be able to revoke the agreement within a certain number of days. The agreement would have to be reviewed to see if it has a revocation clause. Bottom line, if both parties have signed a validly executed severance agreement, the employer cannot unilaterally modify the terms of the agreement, unless the agreement states otherwise. * This response is for general information purposes only and does not constitute legal advice or create an attorney-client relationship. For advice specific to your situation, please consult a qualified attorney.