Severance Package

When one refers to a severance package, he or she is referring to the money and benefits that an employee receives when the company no longer employs him or her. Not all companies are required to pay severance, but most do, especially in cases of outsourcing and layoffs. Employees should check their handbook to see if it details what the company severance package might include. In addition to the employees' remaining pay, employees might receive extra pay - often between one and two extra weeks of pay for each year working at the company. They can also usually convert their vacation and sick time to extra money to be included in the severance package. Often, medical and dental benefits will continue for another month or two until the former employee can find insurance coverage on his or her own. On some occasions, the company may also provide assistance in finding another job.

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