severance pay

NaeNae55

If you offer your employees severence pay, is the amount you offer based on current pay or is it pro-rated on history?

We offer one week for every year, but the pay is based on the most recent job the employee had. So if an employee worked full time for many years and then was half time, their severance would be at half time. If it was half time for years and then they went to full time, the severance would be paid at full time.

How do you do it?

cnghr

Our severance pay is always paid at the current rate of pay, based upon the most recent position held.

sonny

Of late, we pay one week for every two years of service at current rate of pay full time only. We did not pay anything to part timers. I can see where you would have a dilema, but we only have part timers go full time, not vice versa. .

cnghr

I forgot to mention in my previous reply that our severance policy only allows for it to be paid to full-time employees, so that eliminates any question for us with regard to the part-time question.

Dutch2

We have always paid it at their current rate of pay. But - all have been full-time.