Severance


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Related to Severance: severance agreement

Severance

A settlement received after being released from a corporation. In the context of corporate governance, an agreement that assures high-level executives of their postions or some compensation and are not contingent upon a change in control.

Severance

A payment often (but not always) made in a lump sum that occurs when an employee is laid off or fired. Severance is sometime voluntary; that is, an employee may choose to quit and take a severance that is offered instead of staying and risking a layoff with no severance. The amount of severance is determined by the employee's length of time at the company, previous pay rate, and other factors. Accepting a severance makes one ineligible to collect unemployment insurance or to initiate a wrongful termination lawsuit. A severance exists in order to reduce the risk of the company when layoffs become necessary and to improve employee morale.
References in periodicals archive ?
Matthew Travis, a former Ryan employee, will also assume the role of Ryan Severance Tax Practice Leader.
65 percent-45 percent or more in severance costs from payroll tax savings and the coordination of UI benefits.
Indeed, Social Security statistics assert that less than 10 percent of wage earners benefit from severance pay in reality.
It said: "In one case, approval to pay severance of PS141,000 was not provided until after the payment was made.
The cost to councils of severance packages range from less than PS20,000 to between PS100,000 and PS150,000.
For this reason, and following discussions, I have informed colleagues that those who are elected to the 31st Dail will be required to waive their ministerial severance payments.
This scheme gives staff the opportunity to leave their posts with a severance payment.
Grassley, however, said severance packages are for involuntary separations, not willing exits.
4m in pilot severance benefits and related taxes were paid prior to 31 December 2009.
The study, Severance and Change-in-Control Practices 2009, reveals that an increasing number of companies are trying to move toward a one-size-fits-all approach for severance plans: 27 per cent said they have one severance plan for all employee levels.
Citigroup, Inc (NYSE: C) has halted severance pay to some executives.
Instead, take a deep breath and think rationally - about everything related to how you can garner the best severance package possible.