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Definition of 'Severance Package'
A bundle of pay and benefits offered to an employee upon being laid off from a company. The receipt of a severance package is contingent upon signing a severance agreement. The amount of money received is usually based on the length of employment prior to termination, and may include payment for unused vacation and sick days, and unreimbursed business expenses. Other continued benefits that may be offered or negotiated include life insurance, disability insurance and the use of company property, such as a laptop, cell phone, personal digital assistant (PDA) or vehicle. Companies may also offer outplacement assistance, to help the former employee find a new job.
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Investopedia explains 'Severance Package'
Your employee handbook should include information on your company's severance package policy. Keep in mind, however, that the handbook may be out of date, and that severance packages are negotiable. Companies are not required to offer a severance package, and in fact may not be able to offer one if they are letting employees go because they are in major financial trouble.
Accepting a severance package may make you ineligible to file a wrongful termination suit or collect unemployment insurance. As well, the severance agreement may include a noncompete clause, which could interfere with your ability to find a new job. Before accepting any severance package, read the severance agreement carefully and consult a lawyer if necessary.
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Search results for 'Severance Package'
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http://www.investopedia.com/articles/pf/08/negotiating-severance-agreements.asp
The Layoff Payoff: A Severance Package. August 14 2008 | Filed Under ยป
Insurance, Options, Personal Finance, Retirement. Some job ...
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http://www.investopedia.com/ask/answers/08/severance-pay-tax-rate.asp
... Reprints. Feedback Feedback. If I take a severance package from my employer,
how will it be taxed? It depends on your tax bracket. For ...
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http://www.investopedia.com/articles/pf/09/lay-off-staff.asp
... (For more on layoff benefits, see The Layoff Payoff: A Severance Package.); Be quick:
A quick, surgical dismissal, while keeping the above recommendations in ...
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http://www.investopedia.com/university/budgeting/basics7.asp
... Barring that, a smaller severance package or state unemployment insurance can help
tide you over, but neither will provide you with the kind of income or ...
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http://www.investopedia.com/articles/pf/09/planning-for-unemployment.asp
... work, find out what the company can do for you. Ask about a severance package.
Find out when your last check will arrive and determine ...
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http://www.investopedia.com/articles/retirement/09/layoff-retirement-savings.asp
... (If you must leave your job, go out fighting for the best benefits you can get,
see The Layoff Payoff: A Severance Package.) If you don't know the answers to ...
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http://www.investopedia.com/articles/retirement/07/retirement_healthcare.asp
... Therefore, employees should consider these options: Severance Package: Employees
who are forced to leave or retire early should negotiate for a severance or ...
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http://stocks.investopedia.com/stock-analysis/2009/Automotive-Buyouts-Kissing-Skilled-Workers-Goodbye-GMGMQ-F-TM-NSANY-HMC0624.aspx
... to executives. (For more on severance packages, see The Layoff Payoff: A
Severance Package.). Get Free Stock Analysis By Email. IN ...
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http://www.investopedia.com/ask/answers/09/difference-between-golden-handshake-parachute.asp
... A golden handshake is similar to a golden parachute in that it offers a severance
package to an executive when he or she becomes unemployed from a company. ...
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http://www.investopedia.com/articles/pf/09/losing-your-job.asp
... pension, healthcare rights, etc. All of this will be valuable when it comes
time to negotiate a severance package. Be sure to familiarize ...
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