In the US, companies are not required to give severance packages when doing layoffs. Check your local states' labor laws, as it may differ, but most states simply follow Federal Guidelines and there isn't a Federal requirement.
The federal Worker Adjustment and Retraining Notification Act (WARN Act) requires employers to provide 60 days' notice, during which all wages and benefits will continue to flow as usual, giving those who were laid off at least a little time to brace for unemployment, or get busy finding that new (better — knock wood) ...
New York observes “at-will” employment laws, meaning an employer can terminate a worker at any time for any reason or without reason. This works both ways, as employees can also quit their jobs without cause or notice.
Employees in New York State are considered “at-will” employees, meaning that the employee can be terminated without warning, at any time, and for any reason or no reason at all. While employment may be “at-will,” there is an exception to the doctrine of at-will employment in New York.
Employment Termination Letter: Under New York Labor Law 195(6), employers are required to provide employees with a written termination letter, stating the date of termination and the date of termination of benefits. The letter must be delivered no later than 5 days after employment termination.
Under California law, employers must provide notice to employees before termination. For employees who have been employed for less than one year, the notice period is at least 90 days. For employees who have been employed for more than one year, the notice period is at least 60 days.
No - in New York, there is generally no legal requirement for employers to provide a severance package to their employees upon termination, layoff, or resignation. Employers usually do not offer severance packages out of the goodness of their hearts. Rather, employers offer severance packages for business reasons.