Severance or can he stay on the Payroll?

We recently laid off one of our VP's and offered him a hefty severance package (6 months pay and benefits)> Because of his VISA status he is asking us if he can remain on the payroll and be paid like an employee instead of getting it in one lump sum. Has this ever happened to anyone and is it illegal to keep them on the payroll because of VISA status?

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