Severance Pay
KathyA
29 Posts
I'm taking a basic survey to see what type of severance pay you have offered to terminated employees (i.e., due to a RIF for example)?
If applicable, how large is your organization and what type of organization is it (i.e., non-profit, manufacturing, etc.).
Thank you VERY MUCH!
If applicable, how large is your organization and what type of organization is it (i.e., non-profit, manufacturing, etc.).
Thank you VERY MUCH!
Comments
Kathy, we have had different agreements, but the average is a weeks pay for each year of service with a minimum of 2 weeks pay. We have many long term employees, so it is usually capped at 15 weeks. We also pay Cobra for 3 months and offer outplacement services for 3 months. We are retail with 20,000 employees.
Elizabeth
I KNOW YOUR CASH FLOW MIGHT LOOK OK FOR KEEPING A SEVERED PERSON ON YOUR MEDICAL PLAN GROUP COVERAGE, HOWEVER, WHEN FACED WITH A MOTOR CYCLE ACCIDENT WHICH COST THE X-EE THOUSANDS OF DOLLARS IN MEDICAL BILLS AFTER HE LEFT, BUT BEFORE HE HAD SENT IN HIS COBRA ELECTION, BUT WAS ABLE TO GET THE PREMIUM ELECTION POST MARKED WILL CAUSE YOUR COMPANY SEVERENCE PACKAGE TO SAY WHOA!!! STOP THE PRACTICE AND NOW AND DO SOMETHING DIFFERENT!
PORK
When we started the RIFs we had 3,000 employees & are in the financial industry.
Hope this helps!
If the company is under financial duress, we would cap it at a max of X weeks (say 10). We also extend insurance for several months.
Severances are typically only offered to exempt personnel, not non-exempt. We are non-union.
>Severances are typically only offered to exempt
>personnel, not non-exempt. We are non-union.
I would agree except in situations where mass lay-offs occur. Last February, we laid off some 100 employees, mostly non-exempt, and offered all a severance package. Severance packages are always predicated upon signing a severance agreement.
Elizabeth
Minimum 4 weeks pay
1 week severance pay per year of service through 14 years of service, plus 3 months of benefits continuation.
2 weeks pay per additional year of service and 6 months of benefits continuation.
Maximum payout of 52 weeks.
Outplacement consisting of a 2-day transition workshop for hourly and non-exempt salaried employees, 3 month program for exempt employees, and a 6-month program for plant staff.
Since some of our products were moved overseas, I was also able to work with the DOL for educational benefits through the Trade Adjustment Act.
My (current) employer is a $6 Billion company employing about 37,000 worldwide.
So, we accepted immediately, paid out two weeks, remaining vacation and sent her on her way.
We have 45 ee's in 6 states and are in wholesale distribution.