Provide a Severance Package or Not?

angben

Hello, I am new to the group, so first I just want to say Hi.

My question is about whether or not to provide a severance package. We are currently in a re-structuring mode. I have a few employees who are currently exempt Engineers, we are going to eliminate their positions, however, we have technician positions we would like them to move too. They will moved to non-exempt and there will be a decrease in pay of about $5K to $7K.

If a one of these engineers were to decline the new position, would you offer a severance or not?

sonny

I would consider it. .what has your past practice been? How long have they been there? We have been giving one week's pay for every 2 years of service.

PS Welcome. .

NaeNae55

:welcome:

Do you fall under the WARN Act? If not, I am unaware of any set rule on this. When we have made restructuring decisions we did not give severance to anyone who made the choice to leave the organization (or who left early.) For anyone who had to take a cut in pay we followed a plan in our P&P: Employees were given a 12 week adjustment period before we changed the pay. The job change was immediate. 12 weeks is usually enough time for individuals to make the necessary financial changes.

It should be interesting to hear what others are doing.

angben

We do fall under the WARN act, but not in this instance. We are not doing a RIF. Just restructuring some of our organizations. I do like the idea of giving them a time period to get ready for the pay change.