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 ?
Severance pay in Japan over the past two years has typically ranged from 12 months to 36 months at overseas banks, according to the Federation of Foreign Bank Employees Union.
In finding Francia and Dedal administratively liable, Ombudsman Morales stated that despite the clear prohibition under the DBM circular, "they still granted severance pay to Roa in obvious defiance [of] the DBM rules and regulation which they ought to consider in their decision-making as clearly instructed by their own charter.
The criminally fraudulent design is to increase the potential liability of the government, through the MWSS, in differential severance pay 10 times by increasing the number of those supposedly entitled thereto," Esquivel said.
Unfortunately, there is no formal definition of a bonafide severance pay plan.
Labour's Eamon Gilmore also said while he got severance pay in the past we are now in different times and the arrangements needed to end The seven existing Fianna Fail ministers would have been entitled to the payment once a new government is elected.
The Echo understands that Tony Capaldi, Aaron Morris, Warren Feeney, Riccy Scimeca, Peter Enckelman and, most recently, Mark Kennedy are all due a month's severance pay and the players have sought legal representation from the PFA.
If you accept a redundancy and have been paid a severance payment and accept a position within the NSW public service you are required to repay the proportion of severance pay that you have not exhausted.
But, on Monday and Tuesday, the Public and Commercial Services Union held meetings in the city and in Cheshire to discuss savage cuts to severance pay.
What has most people upset is there is absolutely no severance pay," said Al Walentis, who had worked at the paper since 1974 and served as multimedia projects coordinator when he was let go Thursday.
Severance pay arrangements are almost completely flexible if characterization as an ERISA pension plan is avoided (see below).
A senior Labour source said: "It doesn't look great so many people trousered a pile of taxpayers' cash in severance pay and then landed great jobs soon afterwards.
Furthermore, the court saw no reason to distinguish tenure rights from other ones, such as seniority or litigation rights, when those rights are relinquished to receive severance pay The taxpayers appealed the decision to the Sixth Circuit Court of Appeals where this case was consolidated with the IRS's appeal of the Eastern District Court's decision.