Does every company provide severance pay for terminated employees?

[Guest Terisu]

Does every company have their own policies on severence pay for terminated employees?? I'm almost sure that it is something that does not HAVE to be given, but wouldn't most decent, reputable businesses give at least something??

[Sheila K]

Terisu: You are correct, there is no requirement for an employer to pay severance pay. If an employee is terminated for cause, it would be very unusual for the employer to pay out severance pay. If an employer and employee negotiate a separation, such as a separation where the employer and employee agree that the employment is not going well, there may be severance involved in exchange for a signed statement regarding any future claims. This is more likely to happen with high level management employees (usually directors and above here).

Good luck.

Sheila K

[Guest Steve Cox]

While we're talking about severance pay, are there any surveys out there that give the most popular provisions of severance pay plans? I am reviewing my company's plan and wanted to see what everyone else was doing.