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 ?
If the employee quits after continuous service of more than 3 years, up to 5 years, they get two-third of the severance pay.
It added that the staff has no right to ask for an advance payment on severance pay, adding that employees will only receive their packages when they reach retirement age, based on Lebanese labor law.
Back in October, previous Labor Minister Faruk Ecelik said the current system for granting workers severance pay is no longer sustainable.
Lindgren had in an arbitration proceeding against the company claimed termination salary and severance pay in the total amount of almost SEK13m, which would result in a cost of approximately SEK16.9m, including social security contributions, for Eniro, plus interest.
Lourdes Varga-Dedal guilty of simple misconduct for granting Patria Aurora Roa, who was also regional director of the Department of Tourism, P500,000 severance pay in April 2010.
In Israel many people believe that taking severance pay is always a good idea, because if you don't take it, the employer gets to keep it.
A Cabinet Office spokesman said: "This severance pay has been legislation since 1991."
Esquivel said that based on a Supreme Court decision dated March 28, 2011, only 550 named petitioners were qualified to receive additional severance pay from the agency.
The Labour MP said: "It beggars belief that after finding alternative work, due to being made redundant, Remploy's staff have been told that they will lose their severance pay if they accept alternative offers of employment.
Ford Motor Company (NYSE: F), a United States-based automaker, has agreed to pay USD750m in severance pay to hourly workers at its factory in Genk, Belgium.
Resigns as an MP and as a reward gets three months severance pay and up to PS70k to wind down his office and his guilt edged pension is guaranteed.
Spain's right-leaning government slashed employees' maximum severance pay in a sweeping labour reform unveiled yesterday to confront a near 23 per cent unemployment rate.