Useful information About Severance Agreements from CELB
A recent post on the Connecticut Employment Law Blog reports some useful information about the number of weeks of severance pay being provided by employers upon the termination of employment (“Separation Agreements: How Much Severance is Appropriate in Exchange for a Release?”). CELB provides references to its sources which are not repeated here to keep things brief.
Incidentally, I prefer the term “severance agreement” to “separation agreement” (even if not entirely correct) because the latter term makes me think of matrimonial actions. I’m sure some employment terminations are like divorces but let’s leave that metaphor alone.
We are asked by clients, when helping them to review their severance agreements, whether the severance pay being offered is adequate. That’s a question that is extremely difficult to answer because of the wide variations in size of company, industry practices, financial strength of the company, service with the company and, not least, other benefits and compensation being offered along with the salary continuation. For employees of a certain age, to cite just one example, age and service bridges to retirement can be valuable enhancements of the severance package.
I appreciate that CELB and the survey sponsors have provided some useful insight about general patterns with respect to severance pay.
