Your Compliance Edge

An Employer's Guide to Severance Plans

This page features information on the following topics regarding severance plans:
  • Overview 
  • Should You Adopt a Formal Severance Plan or Policy? 
  • Considerations in Adopting Your Severance Plan 
  • ERISA Considerations 
  • Additional Information 
 

Severance plans are generally designed to provide financial support to employees who lose their jobs through no fault of their own. Benefits offered through a plan can help the employee weather the period of unemployment following a termination or layoff, and to some extent compensate the employee for the loss of seniority and other privileges or rights the employee may have enjoyed in his or her position.


FREE Labor Law Penalties
by Company Size Chart

Alerts you to the penalties associated with key federal laws such as
COBRA and discrimination.

 

 

Download HR360

 

Request a Demo and Receive Free Trial Access 

or Log In