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10 Things To Know About Severance Packages

A method behind the madness?

Employers recognize how difficult layoffs are on both affected workers and retained employees; it is not an action taken lightly.

  • Employers must establish a documented, justifiable business reason for the layoff and its affect on various protected classes i.e., age, gender, race and national origin. Executives and HR Professionals typically agree on a formula of how to offer a severance agreement that is fair and equitable given the circumstances.
  • Many use years of service to apply severance benefits and provide one to two weeks of pay for each year of service on average.

As you look over your severance agreement, most employers will spell out their methodology and provide an overview on how your individual severance pay was calculated.

 

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