severence

We have no written policy regarding severence. We have a ten-year employee who resigned on good terms, stating burn-out as his reason. Would anyone think it appropriate to offer him severence for ten years of service? We have a difference of opinion among management. Thanks!

Comments

  • 5 Comments sorted by Votes Date Added
  • No, use severance only when the company makes the separation decision and if there is a consistent policy. Most organizations restrict severance to lay off situations.
  • I agree. We never use severance when the employee resigns. We use it for RIF's, layoffs, etc.
  • No, it would not be appropriate as he voluntarily resigned. Severance is generally a "good will" gesture by an employer toward long-term employees when the company severs the employment relationship.
  • Gosh! I'm agreeing with two people from California in one fell swoop.

    Severence should not be a going away present for a nice employee who is leaving. And, I've never heard of severence for someone who resigned unless they were pressured to do so.

    Typically, severence is a 'gosh, I'm sorry I had to RIF your position' deal, or, a 'this money will tide you over during a job search and, by the way, please sign this contract not to sue and go away'.

    In your situation, it would be more appropriate to bring in a covered dish dinner, a placque and some chips.
  • HRH: Severence for a "voluntary quit", I have never and would never recommend any money for this person beyond company policy of "buy out" of accured vacation days or hours.

    For a really good employee that might provide some factual training of a new person might be considered and provided.

    Has the company considered the value of the evidently good employee, and offered a retention bonus to get the employee to stay and work out the burned out condition or even a transfer to new and more interesting work?

    Bottom-line experience will tell you "cut and open the exit door sooner rather than later". All of the other good guys and friends can take him/her to dinner and have a good time of departure.

    PORK
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