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- What’s ‘normal’ when calculating severance?
What’s ‘normal’ when calculating severance?
- By Alice Bumgarner, Moderator
- 6/12/2009 - 2:00pm
- Office management
Alice Bumgarner, Moderator
Alice Bumgarner, editor of Administrative Professional Today and contributing writer for Executive Leadership, has been writing about workplace and family issues for 13 years. Her articles have appeared in dozens of publications, including http://Salon.com, http://MSN.com, Continental magazine, Southern Living and Town & Country. She lives in Durham, N.C., with her husband, two daughters and dog Milo.
Submit a question for the Admin Pro Forum at Admin-Pro@NIBM.net.
Question: "Is there a rule of thumb when it comes to determining severance for an employee? What factors should be considered when calculating severance (length of service, position in company, etc.)? What seems to be the “norm” in this economic time?" — Sheri Thomas
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7 Responses to "What’s ‘normal’ when calculating severance?"
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said this on 12 Jun 2009 3:38:53 PM EST
We use 2 weeks' pay plus 1 week's pay for each year or fraction thereof of continuous service, up to and including a maximum of 26 additional weeks (max pay = 28 weeks).
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said this on 12 Jun 2009 3:44:10 PM EST
We have 1 week per year worked and max out at 10 years. I think this maxing out at 10 years is generous in today's market. Most others I know of max out at one month pay.
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said this on 12 Jun 2009 4:28:22 PM EST
When we do severance (rare), we give two weeks regardless of the length of employment.
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said this on 13 Jun 2009 8:43:41 AM EST
We don't do severance pay. If someone is let go (whatever reason), they are let go.
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said this on 15 Jun 2009 8:23:35 AM EST
Length of service - 2 weeks for every year worked, except if it's an executive position. Medical coverage is paid for during that time. Then, the Cobra kicks in if they want it. Unused vacation days are paid out to employee.
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said this on 15 Jun 2009 10:06:14 AM EST
Luckily being in central Massachusetts we have had less difficulty in this area because we have not had to let any employee go because of the economy. But when a person is laid off, what we do is offer them cobra (at their expense) and pay them any owed vacation time. So no severance pay. If we fire with cause then they are not even allowed by the state to collect unemployment.
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