The payment is often made based on years of service and sometimes paygrade or rank in the organization. The payment is voluntary, not required. Often an employer agrees to pay severance pay in return for agreeing not to sue for discrimination, wrongful termination, or some other detail.
Ironically, most employees do not received severance payments when they retire at their normal retirement date. Hence, the payment is a common feature of early retirement packages. Increasingly employees ready to retire wait for an incentive package before retiring to maximize their retirement benefits.
Related Fool Articles
- [link link title]
Related Fool Discussion Boards
Post your questions on Motley Fool's "Ask the Headhunter" board. []
Recent Mentions on Fool.com
- This REIT is Entering Its Golden Years - Along With 90 Million Americans
- Record Fine Proposed for Coal Mining Operations
- This Massive Hedge Fund Company Is Investing in Gold, Health Care, and Technology
- Dow Closes Up 62; Is the Bond Market Rally Over?
- ExxonMobil is Actually Performing Much Better Than You Think
- Why Are ?Mom Jeans? Coming Back?