As high-profile brands throughout the United States, especially in California, announce layoffs and job cuts ahead of an anticipated recession, HR leaders are being tasked with crafting severance packages for impacted employees.
Severance pay is monetary compensation that employers offer to employees who are being laid off or let go through no fault of their own. It’s meant to aid employees during the transition period in between jobs. In these situations, employers should give a reasonable notice of termination to affected employees, which can be through a working notice, severance pay in lieu of working notice or both. A working notice is the amount of time the employee continues working until their termination date.
