Do companies give severance anymore?

[kgtest]

Right. This is where my "...In talking to my lawyer, he thinks..." comment comes in. Sometimes just the threat of a messy legal action is enough for them to pay up.

Six months salary is much cheaper/easier/cleaner than going through a legal battle. A company with 7000 employees should make that calculation pretty quickly.

My best friend went through this just last year. They made a few counter offers but ended up in court; he ended up with 2 years pay and benefits.

In my BIL's case, (after 20 years, his performance was suddenly sub-par at age 60) he just said "Do I have to talk to my lawyer about this?!" and all the dogs were called off.

When mgr asks what appointment I have, I tell them its with my lawyer.

 

[Mykle57]

As others have noted, different companies have different policies there is no standard.

Got 'downsized' from Megacorp a few months ago. Got 1 week pay per year employed as severance (15 years = 15 weeks pay). Megacorp has layed-off tens of thousands of folks over a many years. No use fighting it; they had experienced every possible scenario already. However, if you decide to being in a lawyer, you automatically forgo the severance.

 

[brett]

I suspect that it depends on jurisdiction, your age, and your position in terms of how easy or difficult it would be to find similar work/position at a similar salary level. And the size of the company.

In my case I engaged a lawyer to do the negotiations. In the end his fee was simply added to the settlement amount. My package was just under 2 years, plus benefits. But it was not just two years salary, it was the annual average of my annual compensation over the previous two or three years. I was paid on salary and performance bonus. The latter sometimes being as much as 60 percent of salary. It would have been the same for employees on salary plus commission. The value of the company supplied automobile was also captured in the calculation.

The second part is negotiating how the monies will be paid. If your employer is in good financial shape you may want to stagger any settlement, in order to minimize your tax burden.

In my case it was a gift, icing on the cake as it were. We were financially and mentally prepared for early retirement and I had wanted to go out with a package rather than just a handshake. Why not?

 

[rodi]

My MC offered a standard published severance, info was readily available via HR internal website, and I kept a fresh download every 6 months, a "watchful eye". but no major changes in policy even during 2009 or since.

Amount usually dependent on tenure and band/rank. I had over 25 years, got the maximum 60 weeks, plus accrued bonus since I was let go mid-year. And my MC kept me on full benefits for the duration.

I also kept a watchful eye and downloaded pdf copies of the latest severance policy as they were published. They never got "better"... over time the policy got significantly worse. (If I'd been laid off during the best offered plan I would have gotten 1 year of severance and healthcare premiums for a year. At the time I quit - I would have gotten 8 weeks - because that's what the cap had lowered too with the 1 week/year of service (down from 2 years per year of service plus 8 weeks.))

I quit before being laid off, however. Got tired of waiting.

Depending on where you are there may be other factors. It was mentioned about Santa Clara county and 2 months pay. That's actually a California state law thing - the WARN act (which is related to the federal WARN act - but more employee friendly). If they lay off more than 1 or 2 people a month they must publish a layoff notice 60 days in advance. Some employers choose to do rolling layoffs - laying off dribs and drabs every month to avoid the WARN notice. Others choose to pay the 2 months in lieue of notice. Others just lay off - and hope no one notices. My former megacorp tried the latter but an astute former coworker spotted it and they had to give 2 months notice to everyone in the California layoff (but not to the folks laid off in other states.)

 

[Alex The Great]

That's actually a California state law thing - the WARN act (which is related to the federal WARN act - but more employee friendly). If they lay off more than 1 or 2 people a month they must publish a layoff notice 60 days in advance.

Well, I do have a friend who worked in the neighbor Alameda county and he DID NOT get 60 days notice when laid off. That is why I was referring to the county law. I did hear also that some county in San Diego area also require 60 days notice. Which is nice.

 

[Fedup]

I think it has to be a big employer, my husband got laid off from small employer and never got any notice.

 

[sengsational]

TLR, but in my experience, they use a small severance to get you to sign an agreement before you leave.

So you sign, you get, say, two weeks pay or something minor. You don't sign, you don't get the money. The agreement you sign keeps you from suing them or something, IDK.

 

[Johanson]

My megacorp has an official severance policy and I need to read it again but I think it's one week for every year with a max of 26 weeks. You get your benefits (healthcare, etc. for the same length of time and they pay you as if you still worked there i.e. paycheck every two weeks.) But, I know of at least on person, a manager with many years in and successful, getting 2 years. He was in his early 60s and had a second heart attack, and this one was at the office. Management told him it was time to hang it up.

 

[almost there]

Yes. There's voluntary and non voluntary. I took a voluntary severance as the details for the non voluntary severance was kept "secret" to get people to leave. ...And wanted to know exactly what I was getting. ...... Turns out it was the same package. Either way. But walked out like I walked in with my dignity. LOL LOL (Public utility / private co. / nuke plant)
Took mine in Aug. 2013. Got taxed to death as it was late in the year. But would do it all over again given the chance. Was able to get the ret. medical at 51 & 11/12's but not full retirement with 29 3/4 years of service. That's what sealed the deal the ret. med. If you have a choice, go out in Jan. To avoid the insane tax rate. Severances are taxed like a bonus....... 38% - 42% as I recall.... When its all said and done.........

 

[rodi]

I think it has to be a big employer, my husband got laid off from small employer and never got any notice.

Yep - 50 employees or more. (A much lower standard than the federal standard).

http://www.edd.ca.gov/jobs_and_training/Layoff_Services_WARN.htm

 

[Texas Proud]

Well, I do have a friend who worked in the neighbor Alameda county and he DID NOT get 60 days notice when laid off. That is why I was referring to the county law. I did hear also that some county in San Diego area also require 60 days notice. Which is nice.

They can lay you off on day one of the 60 day notice... just have to pay you...

 

[cooch96]

I cannot believe that you do not know if there is severance or not...

Also, if he is being pushed out he could ask others who are also being pushed out... it is not like anybody on this board knows your DH or his company...

Most big companies do offer it... I do not know if 7,000 is at a level where you can say for sure it does...

My Megacorp doesn't write anything down concerning severance pay; lets them keep flexible during bad times and they can't be generous. Most folks let go stay tight lipped, but rumor is $1k for each year of service (I guess this was impressive 35 years ago). sometimes you also get the balance of your vacation paid.

I'm just saying I'm not surprised OP isn't aware of her spouse's Megacorp policy or what is typical in current business culture.

 

[Corporateburnout]

sometimes you also get the balance of your vacation paid.

Sometimes I was under the impression that by law they have to pay all earned but unused vacation time for all departed employees.

 

[bUU]

That would be a state law; so it could vary from state to state.
https://cs.thomsonreuters.com/support/payroll/terminationstatechart.pdf

 

[Corporateburnout]

That would be a state law; so it could vary from state to state.
https://cs.thomsonreuters.com/support/payroll/terminationstatechart.pdf

Thanks for the chart.

Since that I worked in MA and RI and was responsible for plants in CA, ID, TX, states with laws requiring payment for unused vacation time I assumed it's a federal law but I guess I should never assume..........

 

[bUU]

I don't even know what law applies in my case. I work in Georgia, but I work ostensibly out of an office in Massachusetts, but the official company directory shows me working in Missouri. I suspect Georgia wins since it is Georgia State income tax that I pay, which of course means that I have no protection whatsoever.

 

[Fedup]

Unused vacation has to be paid in California but I was cheated out of my sick pay. They told me to save them, I didn't need to take them, but when I got laid off, they said I had to be 55 to get them. It was a lot of hours, it would have been a nice chunk.

 

[Texas Proud]

Sometimes I was under the impression that by law they have to pay all earned but unused vacation time for all departed employees.

Also depends on how the company says you 'earn' them...

My last company was small and it was worded in a way that you actually never earned any vacation.... you could request it and get approval, but there was no policy on how you earned it...

 

[Mykle57]

I believe only CA, IL, MA, MT & NE require employers to pay for vacation time.

 

[RockyMtn]

Our mega corp standard was 1 week per year if terminated for anything other than cause. Fortunately my contract had a hold over clause from my previous employer of two week per year regardless of whether they chose not to renew or I chose not to renew myself.

I had more than a couple of uncomfortable discussions with HR during contract negotiations over that clause. Literally had to ask the HR head to leave my office once! Held my ground and was very happy to collect that check when I retired.

 

[almost there]

Unused vacation has to be paid in California but I was cheated out of my sick pay. They told me to save them, I didn't need to take them, but when I got laid off, they said I had to be 55 to get them. It was a lot of hours, it would have been a nice chunk.

Yep, was told the same. I had over 12 months pay in un used sick time. Was told you get 30% at retirement. I had letters saying I would get it. But didn't get a dime. As the last letter said I didn't qualify due to age. With 30 years of service. Was planning to use it for travel. LOL LOL Reason number 497 to get out as soon as possible. And never look back.

 

[Blue Collar Guy]

to the original poster, my girlfriend just(3/31/17) got laid off/fired her company moved to New Jersey from new York city, the company gave her 1 weeks pay for every year of work to a maximum of 8 weeks, and heath care for 2 months, they paid out unused vacation but they did not pay out for unused sick days she worked there for 10 years,

 

[brett]

I know of one international IT company that even goes so far as to not pay pension contributions.

They changed their DC pension plan to have each years company contribution
from every pay/month to one time a year-at the end of December. Only for employees of record on Dec. 31.

So any employee that gets separated during the year does not get any pension contribution during that year. They also start rating employees lower so that they will either resign, can be demoted, or let go for 'cause'. Very sad to this type of treatment from an American icon/leader in the IT industry.

 

[ChicagoGal]

My Megacorp:
Termination for cause: no severance
Termination for general reduction in force: 3 weeks pay for every year of service (capped at 90 weeks). If you take a lump sum, you get 75% of that total. If you want the full total, it's paid monthly, but somehow adjusted for unemployment (it's technically Supplemental Unemployment Benefits, not Severance).

It's generally a 30 day notification period, although the manager can determine whether or not the employee has to work during that period. In recent reductions we had, the employees did not have to work, but instead were paid their regular salary for the next 30 days.

They froze our pension last year, so that wouldn't be affected. You would get paid out for any accrued vacation time (but we have an annual "use it or lose it" policy, so you can't accrue years worth of vacation - not that anyone would want to...).

 

[Spanky]

Termination for general reduction in force: 3 weeks pay for every year of service (capped at 90 weeks).

That's pretty generous. My m-corp pays 2 weeks + 1 week/yr of service.