How Does Your Company Handle Severance Pay?
Results of our latest two-minute survey*
1. Does your company have a severance pay policy?
- Yes: 41%
- No: 59%
2. Severance pay is given for which of the following circumstances (do not include earned vacation time or pay in lieu of notice):
- Involuntary termination (e.g., permanent layoff, company closure/sale, job elimination): 57%
- Disciplinary discharge: 10%
- Layoff (indefinite): 24%
- Other: 24%
3. Severance payments are based on:
- Length of service: 57%
- Management discretion: 33%
- Flat amount: 10%
4. Amount paid per year of service:
- Less than one week’s pay: 0%
- One week’s pay: 58%
- Two week’s pay: 17%
- Other: 25%
5. Do severance pay formulas differ depending on level of employee?
- Yes: 65%
- No: 35%
6. If severance pay is offered, do you require the employee to sign a release/waiver agreement to receive payment?
- Yes: 79%
- No: 11%
- Case specific: 11%
* Percentages may not add up to 100 due to rounding.
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