Is there a minimum amount of severance pay that a company needs to pay to its employees who are laid off?
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Is there a minimum amount of severance pay that a company needs to pay to its employees who are laid off?
Asked on November 4, 2015 under Employment Labor Law, New Jersey
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
Severance pay is given by some employers to their employees who are laid off or terminated for reasons other than for cause. Whether or not to offer such pay is typically up to the discretion of the employer. As a general rule, there is no legal requirement that severance pay be given to a departing employee. That is unless it is required by the terms of a union agreement, employment contract, company policy or state law (some jurisdictions mandate that be given under certain circumstances).
Here is a link to a site that will explain further:
https://employment-law.freeadvice.com/employment-law/firing/severance_employer.htm
For any further questions that you may have, you can contact your state's department of labor and/or consult directly with an attorney in your area.
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