What exactly is severance pay??

Discussion in 'Fibromyalgia Main Forum' started by keke466, Jun 27, 2006.

  1. keke466

    keke466 New Member

    Don't mean to sound stupid but just want to clarify. Is it things like vacation and sick days you might have left when they fire you? If so I had just used all mine. Mine would have started over in August.

    Thanks Keke
  2. kirschbaum26

    kirschbaum26 New Member

    Dear Keke:

    Many companies or employers have severance packages. If they fire you, or lay you off, you sometimes get additional monies (or notice for layoff) based on a formula that the company has published in their benefits package. This is usually in addition to all the monies that they owe you the day you stop working. It all depends on if you leave on your own (usually just get what is owed to you) or if you are fired, or laid off (sometimes more).

    My company used to have a very generous severance pay package. You would get a minimum of 2 weeks notice or pay, AND one week of pay, or notice for layoff for each year you worked for the company. Therefore, since I have worked for the company for 15 years, I would get 2 weeks plus 15 weeks pay or notice if I was fired, or laid off. My company also would pay for all of my benefits (health, life, dental, etc) for the duration of the "notice" weeks.

    Some other companies who want to get their older, better paid employees to retire, or quit, sometimes offer additional monies or "credit" for service for their pensions in order to entice people to leave, then they do not have to pay for their medical coverage.

    Hope that helps. If you have any concerns or issues, you might want to call an attorney who specializes in employee rights.

    Ingrid