In light of all the economic turmoil and job losses, we conducted a poll to see how employers are approaching severance.  Here are the results (based on 632 responses) in order of popularity:

How does your company currently approach severance?

1.  We have no policy but pay severance on a case-by-case basis (45%)
2.  We have a policy and pay one week per service year (22%)
3.  We never pay severance unless required by an employment agreement (18%)
4.  We have a policy and pay two weeks per service year (9%)
5.  We have a policy and pay less than one week per service year (3%)

So, the biggest chunk of our audience has no policy but pays severance on a case-by-case basis.  Of those with formal policies, most pay one week per service year, with a few paying two weeks per year and even fewer paying less than one week per year.  About one in five never pay severance unless it’s required by contract.

Hope you find this information helpful.  As always, thanks for your participation!

This entry was posted on Monday, January 12th, 2009 at 9:46 am and is filed under Employment Law News, Poll Results, Trends. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.