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Severance pay is often granted to employees upon termination of employment (for reasons other than their own misconduct) and is frequently based on length of employment.

Scope

The amount of severance pay and whether it will be paid is left to the discretion of the employer unless there is a promise or agreement to do so.

Regulatory citations

  • None

Key definitions

  • None

Summary of requirements

There is no severance pay requirement in either federal or state laws.

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['Termination']
['Severance Pay']
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