Termination and Severance Pay Policy
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FAQ
Severance or termination pay is something that many employees have heard of, but far less have actually ever received. Severance pay is usually given by an employer to its employees who are laid off or terminated for reasons other than firing-for-cause.
Severance pay a retrenched employee must at least be paid 1 week's pay for each completed year of ongoing service. However, the employer must pay the retrenched employee the amount specified in any policy or his/her employment contract, if that amount is larger.
Severance pay is often granted to employees upon termination of employment. It is usually based on length of employment for which an employee is eligible upon termination.Severance pay is a matter of agreement between an employer and an employee (or the employee's representative).
However, severance packages typically include pay through the termination date and for any accrued vacation time, unreimbursed business expenses, and an additional lump sumtypically, one to two weeks for every year worked.