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
- Why Buffalo Wild Wings' Stock Could Recover From Recent Losses
- Precision Castparts Misses Earnings Estimates
- Ford Motor Company Earnings: Profits Down on New Product Costs
- Read This Before Buying McDonald's Stock
- Bristol-Myers Squibb Co's Third-Quarter Earnings Beat the Street
- Why U.S. Bancorp Is 1 of the Biggest Warren Buffett Stocks