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.

Mentioned in

References in periodicals archive

"All severance payments are calculated in accordance with the council's approved organisational change policy, where employees are compensated for losing employment through redundancy, voluntary severance or other reasons."

Redundancy bill for council is nearly PS1m; Senior staff among 49 who left authority

According to him, 20 per cent of the severance allowance is to be donated to the family of Leah Sharibu while 20 per cent is also to be paid to the family of Hauwa Liman, the aid worker brutally murdered by Boko Haram after she was captured.

Saraki Donates Severance Package To Leah Sharibu's Family, Others

Those accusations are false, according to Lampert's Transform Holdco, which said in a statement that employees of old Sears have already received their severance payments from the old Sears.

Lawmakers demand Sears' Lampert honor severance talk

The remuneration used as a basis for the purpose of calculating severance pay shall not include what is given to the worker in kind, and housing allowance and transport and travelling allowances, overtime pay, representation allowances, cashier's allowances, children education allowances, allowances for recreational and social facilities and any other allowances or increments."

How much gratuity will UAE employees receive at end of service?

The Marcellus Shale Coalition, an industry lobbying group, and the Associated Petroleum Industries of PA, were joined in a March 11 letter to the governor by various industry groups who also oppose a new severance tax.

Can broad benefits sell a narrow tax?

But the severance agreement that WMC provided David, an agreement that she referenced in her complaint, states exactly the opposite.

Refusal to sign agreement sinks Title VII claim

However, Ken Loo, of the employer representative body Garment Manufacturers Association in Cambodia, said that a severance deposit scheme 'requires much more in-depth study and analysis on the impact it would have on all businesses, domestic and foreign, before implementation'.

Garment workers to be reimbursed

There are many tricky issues involving severance agreements.

Your Counsel: Employee severance agreements

Prior to 2013, building-products wholesaler, BlueLinx Holdings Inc.'s standard-form severance agreements contained provisions that prevented former employees from voluntarily sharing confidential information with anyone, including government agencies.

Restrictive Covenants and Whistleblowing

The bank raised severance pay packages for a second time after it asked about 100 equity employees in Tokyo to leave the firm in January.

Barclays to increase severance pay for staff in Tokyo