Layoff Severance Pay

After being released by their employer, some employees are granted severance pay. Severance pay is granted in numerous forms such as, continued income, insurance, a bonus lump sum, electronics, or stocks. Companies have no legal requirement or obligation to provide a layoff severance pay to an employee, unless it is specified in the given employee's contract. All that is required by federal law post-employment is full payment of all earned wages. This will usually include vacation day payments, but not sick day payments. Companies make sure to provide equal severance to all employees of a given level to avoid lawsuits.

Fast Facts

  • Severance packages may also include mutual agreements between employer and employee to avoid lawsuits and find new employment.
  • Severance pay by continued income can void federal unemployment payments in some cases.

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Results 1-5 of 17 for "layoff severance pay"

  • Severance Pay Basics

    Although many employees assume they have a legal right to severance pay when they are laid off, that's general...
    • Site: employmentlawfirms.com
    • 7 of 7 user(s) found this useful
  • Negotiating a Severance Package

    If you will soon lose your job, whether to a layoff, downsizing, or firing, now's the time to think about a po...
    • Site: employmentlawfirms.com
  • Making Layoff Decisions

    The recent economic downturn has led some companies to consider layoffs. Laying off workers is one of the toug...
    • Site: nolo.com
  • Layoff Laws

    Generally speaking, no law prohibits employers from laying off workers. Unless an employee has a contract that...
    • Site: employmentlawfirms.com
    • 7 of 7 user(s) found this useful
    • Site: employmentlawfirms.com
    • 2 of 2 user(s) found this useful

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