Severance

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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 ?
case Litigation around the issue of FICA taxes remitted on severance pay began in 2001 when Quality Stores, Inc.
Pursuant to the above mentioned provision of the Labour Law, your gratuity or severance pay shall be calculated on your basic salary only.
One judge dissented, agreeing with the Eighth Circuit's reasoning; however, based on that reasoning, the judge said, Rase's payments still were FICA wages since he had accepted the severance pay without relinquishing his tenure rights.
In July, Securicor Indonesia finally capitulated, agreeing to pay severance pay to all of its workers and 11 months of back wages to fired strikers.
While some employers offer this kind of severance benefit, the wage laws don't require severance pay at all.
of Toledo, Ohio, recently admitted in court papers that it hadn't paid its former Jonesboro employees the full amount of their severance pay.
The changes also bar severance pay to employees who are moved from one regional health authority to new, larger authorities that were established by the province.
Before employment contracts are validated, the committee will assure that "clawback" clauses, as well as conditions and amounts of severance pay are clearly defined.
Merritt said pastor Glenn Bohannon offered her two weeks' severance pay and told her if she were to quit playing at Costello's, he would confer with the church personnel committee to see if she could be redeemed.
will accept severance pay and other conditions offered by the management when it closes the colliery in Kushiro, Hokkaido, on Jan.
Part of that fight includes the recognition that dancers face many issues beyond getting pay raises that outpace inflation: guaranteed weeks of work, decent working conditions in home cities and on tour, pension contributions, health and disability coverage and severance pay.
Durk Jager lasted just 17 months at the helm of Procter & Gamble but left with severance pay of $9.