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
- Westport Innovations Q3 Earnings: Major Changes Underway... but Is It Too Late?
- 8 Top Stocks to Buy in November
- Boston Beer Co., Inc. Earnings: Cheers to a Great Quarter
- National Oilwell Varco Earnings Keep the Good Times Going
- What Is Chipotle Stock Worth? Maybe Less Than You Think.
- Stocks With Monthly Dividends 2014: Atlas Resource Partners, L.P.