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 ?
This amount far exceeds severance benefits enjoyed by the other peer group CEOs.
He will also get severance benefits for termination "without cause."
Camden National Bank has pledged not to resort to job cuts at the retail units and to provide severance benefits to all employees.
The liquidation commission was instructed to address the issue of firing personnel of the Financial Police and payment of severance benefits and other entitlements in accordance with the laws of the Republic.
All domestic workers -- whether foreign nationals or not -- are exempt from the Lebanese labor law, which covers working practices, including working hours, basic pay and severance benefits.
Williams agreed to release the company from claims in exchange for severance benefits including salary continuation from through Dec.
It expects to incur charges of nearly pounds 6.4m including severance benefits and asset write-downs from its decision, plus related cash expenditures of pounds 3.8m.
Central withheld Dickens' severance benefits immediately after he was fired on Feb.
Employees will be eligible for COBRA as mandated by law, and severance benefits will be offered.
In accordance with ABX Air's agreement with the union, USD31.4m of the funds have been contributed to the pilots' defined benefit pension trust on 29 December 2009 and USD30.4m in pilot severance benefits and related taxes were paid prior to 31 December 2009.
The EEOC said Allstate had adopted a hiring moratorium for a period of one year, or while severance benefits were being received, that had a disproportionate impact on workers over age 40 because more than 90 percent of the agents subjected to it were in that age group.
It includes a checklist as well as information on how to determine who should be included in the RIF, legal considerations and severance benefits.