Severance Pay

Once the "when" and "how" of your departure is agreed upon, you should concentrate on answering the biggest question: what will you get in return for your years of loyal service to the company and for parting on relatively good terms?

You might get a week's salary for every year you've been with the company. They might use a preset formula to determine the amount of severance pay they're willing to part with.
If in case you are able to convince the employer that your's is a "special case" you might just be able to get past the usual policy. You just might be rewarded for your years of loyal service to the company if you ask for what you deserve. You won't get what you want if you don't ask for it.

While it might be possible to bypass the formula, you might have room to bargain for other privilege and perks that would make you feel more financially secure. For instance, you might ask your employer:

For several extra weeks of vacation pay as you're already legally entitled to be paid for any vacation you haven't taken.
That they allow you to apply for other jobs within the company.
That you have permission to use the company's resources such as the photocopier and computer to hunt for another job.
That they pay you for additional training.

If the outplacement support is not being part of the proposed severance package, you might ask the company to assist you in finding a new job. If they offer you outplacement support, you can ask that it be open-ended i.e. the support will last until you've found another job, regardless of how long that may take.

Your severance pay policy in your company might depend on your rank in the company or on the whims of your employer. In such cases there is no reason to jump at the parting package your employer initially proposes.
Additional money and perks may be available for you, if you speak up so don't hesitate to do so.

Thank your employer when they describe about your severance package.

Request for the proposal in black and white.
Make sure that the employer signs the proposal, so there won't be any dispute later.
Request another week to review your financial position.
Evaluate your needs, offer a counterproposal. There is no harm in trying. You just might be surprised to find that you and your employer can come to terms on your terms.
Severance pay is usually based on length of employment for which an employee is eligible upon termination. There is no requirement in the Fair Labor Standards Act (FLSA) for severance pay. It is a matter of agreement between an employer and an employee. The Employee Benefits Security Administration (EBSA) may be able to assist an employee who did not receive severance benefits under their employer sponsored plan. Feel free to contact EBSA if you have any questions.

How Severance Pay is calculated and when it is due?

Purpose

The FLSA requires payment of at least the federal minimum wages for all hours worked in workweek and one half an employee's regular rate for time worked over 40 hours in a workweek. There is no requirement in the FLSA for severance pay; it's just the matter of agreement between an employer and an employee.

The Employee Benefits Security Administration (EBSA) may be able to assist an employee who didn't receive severance pay required in his or her employment contract.

Vacation Leave

DOL Web Pages on This Topic
Laws and Regulations on This Topic

The Fair Labor Standards Act (FLSA) doesn't required payment for time not worked such as vacations, sick leave or federal or other holidays. This is between you and your employer's agreement.

On a government contract to which the labor standards of the McNamara O'Hara Service Contract Act (SCA) apply, holiday or vacation fringe benefit requirement are stated in the SCA wage determinations in contracts that exceed $2,500.

On a government contract to which the labor standards of the Davis-Bacon and related Acts apply, holiday pay or vacation pay is required for specific classifications of workers only if the Davis-Bacon wage determination in the covered contract specifies such requirements for workers employed in those classifications.

Computation of vacation pay, sick pay and holiday pay, when are they due?

The FLSA does not require that the employer pay you for time you didn't work, such as vacations, sick leave or holidays (federal or otherwise). These benefits are subject to agreement between an employer and an employee.

Overtime, Sick Leave and Sick pay

These days there are no federal legal requirement for paid sick leave. For companies subject to the Family and Medical Leave Act (FMLA), the Act does require unpaid sick leave. FMLA provides for up to 12 weeks of unpaid leave for certain medical situations for either the employ or a member of the employee's immediate family. In many instances paid leave may be substituted for unpaid FMLA leave.

If the employees have worked for at least 12 months and have worked at least 1,250 hours over the previous 12 months and worked at a location where at least 50 employees are employed by the employer within 75 miles then he/she are eligible to take FMLA leave.

Make sure that you get all the benefits, including Pension benefits and Unemployment Insurance from your previous employer.