How Does Your Company Handle Severance Pay?

08.19.2015
HR & Safety

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.

Leave a Reply

Your email address will not be published. Required fields are marked *

Stay Connected with CBIA News Digests

The latest news and information delivered directly to your inbox.

CBIA IS FIGHTING TO MAKE CONNECTICUT A TOP STATE FOR BUSINESS, JOBS, AND ECONOMIC GROWTH. A BETTER BUSINESS CLIMATE MEANS A BRIGHTER FUTURE FOR EVERYONE.