Severance Packages

[chell]

What is the normal for a severance package when someone is terminated from their job? This involves a situation where the employee worked for the company for eight years.

Thanks in advance for your answers.

 

[Bob Slydell]

It depends on the person's level, whether they have an employment agreement or not, whether they're union or not and stuff like that.

But in general, it's often a week or two's pay per year of service. I think I got one week per year the time I got laid off.

 

[SC Minnie]

Ours is 2 weeks as a standard when someone is not fired out right but typically they end up giving 2 weeks for every year of service.

 

[tar heel]

I don't think there is a "normal." You hear about big corporations doing so much for each year worked. With North Carolina being a right-to-work state, I think absolutely nothing is pretty common. Did this person get fired or was it a reduction in force-type thing?

 

[Chicago526]

It depends on the company too. My company, you get two weeks, period. At least that's what is in the employee hand book anyway. I think you also get any un-used accrued vacation time, but I think they have to give you that by law.

 

[Planogirl]

We got six weeks to start and then the company added a week for each year up to three months. I was happy because I'd only been with the company for nine months and I still got a decent severance. This company was clearly upset about closing the facility though and I don't think that's the norm.

 

[Mandabella]

I think "normal" can vary from company to company. Some companies do not offer any type of severance.

In my experience, you get 2 weeks pay for every year of employment and 6 months of medical/dental insurance. After the 6 months, you can pay for COBRA if you wish to continue the coverage.

Someone else I know got a minimum 2 months severance plus a week for every year employed.

And yet another person I know got NOTHING!

 

[chell]

Thanks everyone.

This situation is because the employee has lost focus and has been sick a lot during the past year so the company decided to terminate their position because it has had a negative effect on their fellow co-workers. Last summer another employee, who had only worked there for 10 months was terminated from their position and given four weeks of severance.

No unions or contracts are involved in either case.

 

[caitycaity]

we get 1 week for every year we've worked here.

 

[m&m's mom]

Thanks everyone.

This situation is because the employee has lost focus and has been sick a lot during the past year so the company decided to terminate their position because it has had a negative effect on their fellow co-workers. Last summer another employee, who had only worked there for 10 months was terminated from their position and given four weeks of severance.

No unions or contracts are involved in either case.

If you are terming w/ cause and have proper documentation (and I so hope you do) then 2 weeks is being very generous.

 

[mickeyfan2]

There is no norm for severance packages. I have seen two weeks only and I have seen two weeks per year of service/re-education/health coverage for a year. It seems to run the gamit and depends on the employer. That said severance packages seem to be getting smaller and smaller these days. The best one seem to be 5+ years ago.

 

[jenks0718]

When I was laid off after working at the company for nearly five years I too got two weeks for every years of service, plus all unused vacation and personal days.

 

[huckster]

iam i reading this wrong did the person lose thier job partly because they were disabled from an illness?

 

[indigoxtreme]

It read to me that the person was term because they did not come to work. Out sick (?) alot. But if you are terminated with cause such as this, our company only gives you what vacation time you earned. No extras it is your fault you were terminated not theirs. When some have been laid off, the company has given as much as a month's pay.

 

[chell]

iam i reading this wrong did the person lose thier job partly because they were disabled from an illness?

They were sick a lot last year from a medical condition as well as added stress in their life. That was a major factor in their termination, if not the major factor.

 

[chell]

It read to me that the person was term because they did not come to work. Out sick (?) alot. But if you are terminated with cause such as this, our company only gives you what vacation time you earned. No extras it is your fault you were terminated not theirs. When some have been laid off, the company has given as much as a month's pay.

They were out sick but did use their sick and/or vacation time for being out those days.

 

[zippeedee]

Did they qualify for Family and Medical Leave (FMLA)? If they did, weren't out more than 12 weeks and their illness was the only reason for the termination, they could have grounds to sue. It is a long process though.

This is a very tender subject with me, I was laid off last month, after 22 years of service, two weeks after returning from medical leave for my thryroid cancer treatments. I got one month notice pay, three months of health coverage and six months severance. Anyone laid off before 10/1/05 with my service received a year of severance. I'm angry but after reading some of these other policies, I guess I should count my blessings!

 

[wvjovifan]

I work for a MAJOR insurance co in MD and they are moving our jobs to Charlottesville VA in Dec 06. They gave us 2 years notice of the move, and our severance package gives us 1 weeks pay for every year with the company up to 10 years, over 10 years you get that plus 2 weeks pay for years 11 and up with a cap of 52 weeks pay. I have been there 32 years (33 in July) and I qualify for all 52 weeks pay. PLUS my unused vacation days which will probably be about 10 weeks ( if I don't use too much before then).
Personally, I can't wait to be unemployed for a while! My kids are grown and my DH has a good job so my dream of being a housewife is about to come true!!! 336 more days!!!!

 

[EthansMom]

Thanks everyone.

This situation is because the employee has lost focus and has been sick a lot during the past year so the company decided to terminate their position because it has had a negative effect on their fellow co-workers. Last summer another employee, who had only worked there for 10 months was terminated from their position and given four weeks of severance.

No unions or contracts are involved in either case.

Do you plan to "fire" the employee or "lay them off"? If you plan to fire the employee, my understanding is that you can't really fire them for being legitimately ill unless you want to get sued. You can fire an employee for poor job performance, but should have that documented (via performance reviews and written warnings) in their employment file.

If you plan "lay them off", you don't really need any cause at all.

If the employee is being fired for poor job performance, then two weeks pay in lieu of two week's notice (in other words, go home now but we'll pay you for the next two weeks) isn't unreasonable. Anything more is generous.

If the employee is being laid off then two weeks pay in lieu of two weeks notice is the bare minimum at many companies. One week of pay for each year of service is very generous.

Also, consider that most states won't allow the former employee to receive Unemployment if they've been fired, but will give them Unemployment if they've been laid off. And, being fired or laid off makes a big difference when that employee goes looking for another job.

 

[chell]

EthansMom the term being used is that their employement is being terminated. The higher ups seem to be very careful to only say that the employee is being terminated.