What's the general rule on how much severance pay to offer RIF'ed employees? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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What's the general rule on how much severance pay to offer RIF'ed employees?

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in Human Resources,People Management,The HR Specialist Forum

We have to lay off several employees. Some have only been with us a couple of years, but one has worked here for 13 years. We want to treat them right by providing severance pay, but I don't know how much is appropriate. Those of you who have been in this situation, how much severance did you offer?—Jason, Ga.

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{ 6 comments… read them below or add one }

Roni September 23, 2009 at 5:29 pm

The minimun should be 1 week per year, but 2 weeks per year would be more fair.


S. Nealy September 23, 2009 at 11:40 am

We give 1.5 weeks for every year for non officers and 2 weeks for officers. It is also a minimum of 8 weeks for all employees.


Kathy Hatton September 21, 2009 at 5:30 pm

Some policies I have seen offer 2 weeks upfront, then 2 additional weeks per year of service. The employee signs a release to obtain the severance.


Angie September 18, 2009 at 7:26 am

We have offered 1 week per year (minimu 2 weeks and maximum of 8 weeks) and rounded years of service up. We also pay out any unused vacation (which is not accrued or owed per our policy) and bonus for work performed to date. We do require a release to receive this.


Sarah September 16, 2009 at 8:55 am

We have a similar poilcy in our company. We offer 1 week per year (minimum 2 weeks) and any unused vacation/earn time. We may even give any year end bonus money that normally would come to the person (perhaps pro-rated).


Charlene September 15, 2009 at 4:52 pm

Have done 50+ of these this year (some EE’s with over 10 years of service) in our privately held company. Offered 1 week per year (minimum 2 weeks, max 12 weeks) and rounded years of service up. Many public companies have a much more generous cap (26-52 weeks)


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