Severance

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Related to Severance package: severance agreement, severance pay

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 ?
The cost to councils of severance packages range from less than PS20,000 to between PS100,000 and PS150,000.
Marilyn Chambers, a church member, confirmed that a vote on both items was taken, and the severance package passed by a large majority of the 40 or so remaining church members, but she did not know the exact results of the vote.
However, many companies offer severance packages when they lay off workers.
The goal of this ReedLogic Video Seminar is to provide professionals with essential information on what to know before accepting a severance package, in a video format they can easily watch in 60 minutes.
Although dismayed, the staff appreciated the time being allotted to finding new positions and the severance package offered if they could not find jobs by June 30, 2003.
While they didn't offer an explanation for the dismissal, the regents did say the action was taken "with cause," a sure sign they do not want to pay Dobelle a $2 million severance package.
Offer each budgeting leader an immediate one-year salary and benefits severance package if they can conclusively prove to the satisfaction of the remainder of the team that they can eliminate the functions of their position permanently.
I was surprised to learn that an employee does have some leverage in negotiating their severance package.
Many of the 8,200 employees targeted for the unemployment line opted to leave the company under a severance package that included several months pay and medical benefits for a year.
Some elements of her severance package, such as $12.
Ensure that the employee has the terms of the severance package in writing to avoid future misunderstandings.
Nemer added that, "Employees should negotiate their severance package offers as they're not a 'take-it-or-leave-it' situation.