• Termination
  • Topics
  • Termination Topics
  • Severance Pay
  • Policies
Layoffs happen. Downsizing is common. Mergers create overlap problems, and employees are cut. Must an agency offer compensation to employees who are terminated involuntarily? By Federal law, no. However, most agencies do offer severance pay in one way or another. Why bother? Why do agencies offer compensation when they don’t have to? Instituting a well thought out severance pay program can offer employers and employees mutual benefits. A severance pay program can help stave off potential lawsuits initiated by terminated employees. Further, offering such a program creates a more competitive applicant pool, and makes a newly hired employee feel more secure and valued. 

You must be logged in as a member to see the full content.