Severance Pay

Subprime Loan

Money paid to an employee who is laid off, fired or leaves by mutual agreement. employers are not generally required to offer severance pay, although a few states require some severance pay for employees who lose their job in a plant closing or large layoff. employers may also be obligated to provide severance pay if they promised to do so in an employment contract or employee handbook.

Was This Term Helpful?

0 out of 0 found this helpful

Still got a question or concern?

Click here to contact us or go back to the main Glossary page.