Reasons an Employer may want to offer Severance Pay in Employment Termination

Severance pay is simply monetary benefits that an employer may want to offer to a worker who has been laid off. Some of the circumstances that can warrant these types of financial benefits include job elimination, layoffs, and mutual agreement between the employer and employee to part ways.

According to The Sattiraju Law Firm, P.C, severance pay often amounts to 1-2 weeks of pay for every year you (the employee) offered your services to the organization. For middle managers and executives, the pay may even constitute a maximum of a month’s payment for every year of service or what was negotiated in the executive’s contract.

What most people don’t know is that severance pay might amount to hundreds of thousands of dollars mainly when dictated by an employment contract. That implies that middle managers or even senior employees or executives parting ways with a certain organization might be extremely …