Severance Package Add Currency For Free

Consider what other employees have received as a severance and consider how long you may be looking for other employment. Remember that you can negotiate benefits such as continued health insurance and assistance finding a new job in addition to severance payments.

Some employers choose to offer severance pay to employees who are terminated, either involuntarily or voluntarily. The primary reasons for offering a severance package are to soften the blow of an involuntary termination and to avoid future lawsuits by having the employee sign a release in exchange for the severance.

The general practice is to try to get four weeks of severance pay for each year worked. Middle managers and executives usually receive a higher amount. Some executives, for example, may receive pay for more than a year. If your lump-sum severance payment is considerable, it could push you into a higher tax bracket.

Why do employers offer enhanced redundancy payments? Many, though by no means all employers, will offer enhanced severance payment if they have to make an employee redundant. Employees with over two years' service have the right to a statutory payment on termination of employment.

Enhanced Severance Payment means an amount equal to 2 times the Executive's annual Base Salary as in effect immediately prior to the Termination Date.

The severance pay offered is typically one to two weeks for every year worked, but can be more.The general practice is to try to get four weeks of severance pay for each year worked. Middle managers and executives usually receive a higher amount. Some executives, for example, may receive pay for more than a year.

What should a severance package include? Your severance package should include information about your financial compensation under the agreementfor example, how much you will be paid and how it will be paidas well as how you will be compensated for your unused vacation and sick time.