Severance Pay is an amount paid to an employee on the early termination of a contract. If you have promised a certain amount to your employer and you have not seen the money earlier then your employer has dishonored a contract. This is not same as the actual wages as you didn’t actually work for that amount.
An employer is legally required to give severance pay if worker believes that they should pay when they leave the employment. There should be a written contract that the severance would be paid. If there should be extra work done by the workers then additional payment should be paid in that case. Here we would like to mention some of the important aspects about severance pay and interested candidates must follow them carefully. There are some conditions when you will get this pay and you need to be fully aware of those conditions. Just keep on reading the article as we will explain them out in detail.
What you will get in severance pay package:
Severance pay is a benefit for the employee when he leaves employment and any company. This package includes: –
1: – An additional payment based on extra work.
2: – Stock options.
3: – Retirement benefits.
4: – Payment for unused leave.
5: – Medical, dental or life insurance.
6: – A promise that employee will get regular severance pay.
7: – Workers aged more than 40 and above must be given more time.
Severance agreement should not be signed if you feel that you were unfairly behaved by your company. After signing it may be more difficult to prosecute for wrongful extinction. If severance agreement has been signed by the workers, they may have signed over their right extinction the company over issues involving your termination.