Comments on: Why Severance?

By: Anonymous

Anonymous — Tue, 05 Jun 2007 16:32:00 +0000

the last 4 people in my position received a severance of 3 weeks for every year to retire early. now, after carring the work load alone for 5 years, the company is terminating me with less than 1 week for every year. Is their any entitlemant here due to past practice? It’s the only case I have after all the research I’ve done. mike

By: robert edward cenek

robert edward cenek — Thu, 19 Apr 2007 03:01:00 +0000

Severance packages are in most organizations a CYA activity; however, there still are some firms that do provide the help on the way out for more reasons than legal posturing.

Release agreements are increasingly coming under legal challenge, depending on how they are crafted.

And….like anything, they are negotiable, which most people do not realize.

robert edward cenek, RODP
http://www.cenekreport.com
Uncommon Commentary on the World of Work

By: she said:

she said: — Mon, 16 Apr 2007 18:36:00 +0000

"How is this lucky? Being paid for your last week or two of work isn't a privilege, it's a right by law. "

Not if they go out of business.

It is only in the last 10 years that the work environment is so favorable companies rarely go out of business.

It used to happen a lot. Even with very well known companies.

By: Mike Doughty

Mike Doughty — Mon, 16 Apr 2007 15:48:00 +0000

Having reread my comment on this subject, I see where it might have come across as, er…….a little cynical (what can I say; I’ve worked in HR, primarily labor relations, for 30 years). In fact, there are many good applications for severance pay, as several commentors have aptly pointed out. I was a little too focused on what I see as the misuse of these packages. It particularly galls me to see highly placed people get paid large amounts to leave when they should just have just been shown the door because of incompetence, poor judgement, or bad behavior. This is highly visible to every other employee and adds to the above referenced cynicism.

By: apu

apu — Mon, 16 Apr 2007 10:35:00 +0000

I think it makes sense especially in cases where employees are fired for reasons beyond their control – like M&As which make certain positions redundant

By: Ibn Tumart

Ibn Tumart — Mon, 16 Apr 2007 01:14:00 +0000

Evil HR Lady, would you mind if I asked you how you feel arbitration provisions affect severance packages? It seems to me that most companies have some sort of mandatory arbitration clauses that employees have to sign.

How do you think that impacts the worry that departing employees will sue if not given a golden parachute?

By: Ibn Tumart

Ibn Tumart — Mon, 16 Apr 2007 01:11:00 +0000

Once upon a time you were lucky to just get a last paycheck.

How is this lucky? Being paid for your last week or two of work isn't a privilege, it's a right by law.

By: Wally Bock

Wally Bock — Sun, 15 Apr 2007 17:37:00 +0000

With severance packages there is also the case of the merger or acquisition. I know one young man whose company was bought by a larger company in his industry. His area (IT) was marked for “eliminate duplication.” The acquiring company went through the IT staff, offering some the option to work as independent contractors and others severance packages. Help was also made available for finding new jobs. At the end of the day in this particular situation, the IT staff generally feel like they were treated fairly and humanely. In the long run, I don’t see how that can be anything but good.

By: Evil HR Lady

Evil HR Lady — Sat, 14 Apr 2007 11:20:00 +0000

There is definitely good will involved as well. I do tend to focus on the negative side of things, but there is "niceness" involved as well.

Managers and HR hate laying people off. We really, truly do. We like to be nice.

By: she said:

she said: — Fri, 13 Apr 2007 19:10:00 +0000

I think pension plans have largely been replaced with stock options and 401k's.

I know from the first year I started working till the time I swung out of corporate America - the amount of companies offering them rose quite dramatically.

Also - I wont be popular with this - but I find it a little ridiculous that people expect a severance package.

Once upon a time you were lucky to just get a last paycheck.

Any company providing one is going above and beyond, no matter what the motive. They don't have to.

I don't know what is worse. A company that has to fire people for making too much money - or a workforce who is so sue-happy, they force companies into this practice.

And basically - the consumer for which none of these people would even get a paycheck - gets screwed.