Severance Pay and Benefits

Severance pay is a common agreement that is negotiated between an employer and an outgoing employee. Under the terms of a severance agreement, the employee generally agrees to relinquish any future claims against the employer in exchange for additional pay and benefits after termination. However, there is no federal law governing these agreements. The terms of the package are strictly up to the employer and employee. Nonetheless, severance benefits are often in the best interest of both parties, as they can prevent lengthy and costly court battles. Read more