Severance Pay
What is Severance Pay?
Severance pay refers to compensation provided to employees upon leaving their job. It is typically calculated based on tenure and salary, serving as financial recognition for service length.
Benefits to Employer
Compulsory severance systems streamline termination processes by predefining an employer’s financial obligations. These frameworks foster trust, as employees see outcomes as fair and transparent. It also encourages employees to maintain a high standard of work until their final day.
Benefits to Employee
Severance pay systems offer financial security for employees by linking compensation to length of service, ensuring fair and proportional support during job transitions. These structures recognise individual contributions while fostering stability, particularly in regions where standardised payout practices help employees navigate career changes without immediate financial strain.
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Ben is easily the most engaged initiative we’ve ever had. It gets everything to everyone in different locations, and I can’t even tell you how much time it’s saved us.
