Severance Pay Essay

Separation pay can be offered to the employee being laid off. Severance pay typically sums to a week or two of pay for each year the employee worked at the company. In most cases to receive severance an employee will have had to work for the employer for more than a year. The Fair Labor Act requires that a company compensate an employee who has been laid off their regular earnings through their end date and for any time that the employee has built up . This usually consist of accumulated vacation time. The number of months the employee will be given will be regulated by the quantity of years the employee served the company