Severance Package Template

This severance package template has 3 pages and is a MS Word file type listed under our human resources documents.

Sample of our severance package template:

SEVERANCE PACKAGE This Severance Package is maintained by [COMPANY NAME] and certain of its subsidiaries and affiliates (the "Company"). The purpose of this Severance Package is to provide temporary benefits to eligible Executives whose employment is involuntarily terminated and to assist such Executives with their transition to new employment. The Severance Package is not intended to create a vested entitlement for Executives who are offered a Comparable Position of employment or to provide benefits to Executives who are terminated for a non-eligible termination reason. No Executives have any vested right to any benefits under this package prior to the date the Executives are terminated for reasons rendering the Executives eligible for benefits under the express terms of the Severance Plan. APPLICATION This Severance Package applies solely to individuals who are eligible Executives, with the exclusion of Executive Committee Executives of the Company on their Termination Date. The eligibility of the Executive shall be determined by the Severance Plan of the Company. SEVERANCE PACKAGE AND PAY SCHEDULE This Severance Package includes: The Executive's remaining regular pay An additional payment based on months of service Payment for unused vacation or sick leave A payment in lieu of a required notice period Medical, dental or life insurance (Some employers offer a continuation of insurance benefits, but without paying the bills.) Retirement benefits Stock options Unemployment benefits Except as otherwise provided, benefits under this Severance Package shall be paid as follows: Duration of Employment Term Number of Weeks Less than one year 3 One year - less than two 4 Two years - less than three 4 Three years - less than four 5 Four years - less than five 6 Five years - less than six 7 Six years or more 8 The maximum allowed severance period is eight weeks. Severance is calculated on base pay only. Executives may choose to receive it as a salary continuation benefit (continue payments on scheduled paydays) or in a lump sum. Subject to the terms of any applicable Plan documents, during the severance period, medical, dental, and prescription drug benefits coverage may be continued, and certain other welfare benefits may be continued as to the Executives and for the periods of time determined by the Company in its absolute and sole discretion. Notwithstanding any other provision in this Severance Package, expatriates eligible for Severance Benefits under this Severance Package will receive only the greater of: