Nowadays, there are workers who often switch jobs, either due to the personal choice or because they are forced to transfer. Upon ending employment in a certain company, these employees may be given something by their employers their way of appreciating the efforts exerted by the former while employed in the company.
When the bond between the employee and the company ends, employers may show appreciation with regard to their employees' performance during their stay in the company by providing them with benefits that are under severance packages.
What are Employment Severance Packages?
A severance package is a package of employee benefits which is given by the employer when the former leaves the company. There are various reasons why an employee leaves a company. The bonds or ties between the company and the employer may stop or end due to reasons such as:
- when an employee was laid off
- when an employee retires by choice or when he/she reaches the limit when it comes to the retirement age
- when an employee decides to resign or stop working for the company
- when a employee was fired by the company where he/she is working in
When employees leave the company due to one of the things mentioned beforehand, their employers may provide them severance packages.
Basics in Employment Severance Packages
is no law in the
There are various benefits that are found in a severance package. The benefits that are included under a severance package may not be limited to money. Employees may negotiate with their employers with regard to the benefits that will be included in their severance package, if they are in the right position to do so. The benefits that can be asked for by employees in a negotiation include:
- References- If the bonds between employees and their companies end due to a reason that is unfavorable for them, employees can talk or work it with their employers in producing or coming up with a mutually agreeable reference letter.
- Outplacement services- In outplacement services, employees are given help by outplacement firms when they are looking for a new job elsewhere. These outplacement firms may provide employees job skills training, and outsourcing, among others, that can lead those employees to probable and potential jobs.
- Unchallenged or uncontested unemployment compensation- There are times when employers do not agree with the employees' unemployment claim. In order for employees to prevent this situation from happening, they should talk to their employers and ask them not to contest it so that the former may easily receive their unemployment benefits.
- Insurance benefits- Although the health insurance law permits employees to keep their health care, the one they had with their employer, it obliges these employees to pay for the premium's full cost for its coverage to go on or continue. That is the case if there is nothing in the law that will forbids employers to pay for it.
Help Received through Severance Packages