Severance Agreement Policy
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FAQ
Typical severance packages offer one to two weeks of paid salary for every year worked. You usually have 21 days to accept a severance agreement, and once it's signed, you have seven days to change your mind.
A severance agreement should include the following elements: The name of the employer and employee. The effective date of the agreement. The employment period of the outgoing employee. The severance pay amount. Terms of continuation of benefits. Employee waiver of legal claims (within reason)
Providing one-to-two weeks of pay per year of service is a standard practice, with management and above typically receiving four weeks or more and executives receiving anywhere from three to 24 months of severance pay.
"There's no such thing as a standard severance agreement," Blit said. Still, severance packages usually include some or all of a common set of offerings: financial payment, continued access to health care and other benefits, job-search assistance and mental health support.
A severance agreement often provides for post-employment benefits, such as pay, continuation of health or other insurance, and job placement assistance and what the employee needs to do or not do to receive those beenfits.