BNET Business Dictionary
Business Definition for: Severance Pay
- a lump-sum payment made by an employer to an employee at the point at which the employee leaves the organization.
- U.K. term Redundancy Payment
- See also Unemployment Compensation
Additional Resources
- 'Chutes of gold: Centerior execs may reap millions in severance pay under Edison deal. (acquisition of Centerior Energy Corp. by Ohio Edison Co.)
- Centerior execs may reap millions in severance pay under Edison deal Centerior Energy Corp.'s top executives and officers will receive nearly $10 million in severance packages if they lose their jobs as a result of the pending acquisition of Centerior Centerior execs may reap millions in severance...
- Research articles 1997-02-17
- Termination And Severance Pay Policy
- The Termination and Severance Pay policy defines the various types of separations from the employ of the Company and the effect of separation on benefits and continuous service. It covers information on applicability, types of separation, severance pay, accrued vacation time/pay, insurance, and length of service, among other related topics.
- Tools & templates 2007-11-16
- Taxes on severance pay.
- More bad news for employees caught in business downsizings. Severance pay tied to general waivers of job-bias claims is taxed. A longtime IBM worker accepted company's early-out offer of 49 weeks' pay. He signed a general release waiving job-discrimination claims against IBM. ...
- Research articles 1996-02-23
- Food Roundup: China Safety Debate, Smithfield Union Delay, Kellogg Severance Pay, and More
- China postpones food safety debate -- The Chinese legislature will not debate proposed revisions to its food safety laws until early next year, in order to allow more time for evaluation. Melamine contamination and other food safety scandals have led the country to reevaluate its current policies. [Source: AP] ...
- Blog posts 2008-12-22
- Termination-severance pay deals must be precise to avoid litigation.(News)(International Business Machines Corp.)
- Byline: JUDY GREENWALD ST. LOUIS-Employers that ask terminated employees to sign claims release forms in return for severance pay should ensure that those forms are written in easily understood language, in light of a recent appeals court decision Byline: JUDY GREENWALD ...
- Research articles 2005-05-23
- Big win for IRS on payroll tax exemptions for severance pay.(PAYROLL TAXES)
- A big win for IRS on payroll tax exemptions for severance pay: A big win for IRS on payroll tax exemptions for severance pay:
- Research articles 2008-03-20
- FICA tax refunds for severance pay.
- Firms should consider filing for refunds of FICA on severance pay. Issue involves payments made to employees laid off involuntarily. In our April 12 Tax Letter, we reported on a Court of Federal Claims case that said severance pay for workers who were laid off...
- Research articles 2002-04-26
- Union leaders call for reduction of severance pay
- AIRLINE INDUSTRY INFORMATION-C1997-2005 M2 COMMUNICATIONS LTD Union leaders have asked US Bankruptcy Judge Stephen Mitchell to cut down on the severance pay proposed to 11 top US Airways executives who will not be employed by the new company when the airline merges with America West Airlines. Under the...
- Research articles 2005-09-16
- United Airlines CEO confirms plan to give severance pay to furloughed employee groups -- Goodwin urges U.S. Congress to deliver aid to displaced airline employees.
- M2 PRESSWIRE-10 October 2001-UNITED AIRLINES: United Airlines CEO confirms plan to give severance pay to furloughed employee groups -- Goodwin urges U.S. Congress to deliver aid to displaced airline employees C1994-2001 M2 COMMUNICATIONS LTD RDATE:10102001 CHICAGO -- United...
- Research articles 2001-10-10
- Severance pay funds concerned about annual withdrawals.
- Colombia, Feb 14, 2003 (El Tiempo/SABI via COMTEX) The AFPs Administradoras Fondo Pensiones, the administrators of Colombia's severance pay funds are expressing concern over the practices of some companies in allowing their employees to withdraw amounts from the funds. According to the president of...
- Research articles 2003-02-14
- High Court denies severance pay in 'transmission' cases.(Brief Article)
- Mar 24, 2005 (Benchmarking HR - ABIX via COMTEX) The High Court of Australia has overturned two Federal Court rulings on severance pay. The cases focused on the Workplace Relations Act's transmission of business provisions. The first case involved Gribbles Radiology. The High Court...
- Research articles 2005-03-24
- Workers get severance pay and keep jobs.
- Apr 24, 2003 (Benchmarking HR - ABIX via COMTEX) Blake Dawson Waldron has evaluated a controversial legal case as an outsider to the dispute in question. The Federal Court ruled that when Amcor sold its PaperlinX subsidiary, employees made redundant at the time, but...
- Research articles 2003-04-24
- Dina Employees Demonstrate Against Lack Of Severance Pay.
- MEXICO CITY, Oct 23, 2001 More than 200 employees of Dina closed a major Mexico City highway in front of the Labor Ministry, leading to traffic chaos during rush hour, reported Mexico City daily el Economista. Employees demanded intervention by the government in order...
- Research articles 2001-10-23
- AIG's Sullivan: New Poster Boy for Excessive Pay
- AIG's Sullivan: New Poster Boy for Excessive PayUnfortunate mischaracterizationsSullivan's actual "severance" is some fraction of the reported numbers. Per this news story (http://news.yahoo.com/s/afp/20080617/ts_alt_afp/uscompanyinsuranceaigfinanceexecutive_080617220255):"According to the Corporate Library, the package for Sullivan would include 26.6 million dollars in cash bonuses, 21.9 million in stock awards and 14 million dollars in a...
- Discussion threads 2008-06-19
- Ambiguity doesn't work; In layoffs, plan language must be clear, court rules.(Ronald Gerlib vs. R.R. Donnelley & Sons Co. case on employee benefit and severance plans)
- CHICAGO-A federal district court decision in Chicago illustrates the importance of clear language in employers' benefit and severance plans. The court ruled in Ronald Gerlib vs. R.R. Donnelley & Sons Co. that a severance plan administrator improperly offered employees who were losing their...
- Research articles 2001-11-26
- PROPOSALS FORCE LOOK AT EXECS' EXIT PAY.
- Sherwin-Williams Co. and FirstEnergy Corp. are two Cleveland-area companies caught in a wave of shareholder proposals that look to put a different color on the severance pay agreements of top-level executives. Shareholders for those companies and s Sherwin-Williams Co. and FirstEnergy Corp. are two...
- Research articles 1999-04-05
- Delta to seek severance for top execs
- In an effort to halt an exodus of top-level people, Delta Air Lines today will ask a bankruptcy judge in New York for permission to set up a severance-pay plan for executives whose jobs are eliminated in reorganization. Top managers at the Atlanta-based carrier have taken pay cuts and...
- Research articles 2006-02-22
- IBM Workers in North Carolina Plan Challenge Tax on Severance Pay. (Originated from The Charlotte Observer, N.C.)
- Oct. 6--Hundreds of people in North Carolina are about to join a nationwide movement of former IBM employees who claim their severance payments should have been tax-free. Oct. 6--Hundreds of people in North Carolina are about to join a nationwide movement of former IBM employees who...
- Research articles 1994-10-05
- MiscommunIcation? Surplus assets issue surfaces over layoffs; AT&T says it never planned to use excess for severance pay despite charges of union.(Communications Workers of America cries foul)(Statistical Data Included)
- BASKING RIDGE, N.J. - AT&T Corp. and its union workers found little common ground in recent contract extension talks, but disagreement over using the company's $4 billion pension fund surplus for severance payments to thousands of employees expec BASKING RIDGE, N.J. - AT&T Corp. and its...
- Research articles 2002-03-04
- Gormley's severance pay tops $1.8 million. (former Federal-Mogul Corp. CEO Dennis Gormley)
- Former Federal-Mogul Corp. CEO Dennis Gormley found gold in his parachute after all. Gormley was given a severance package worth more than $1.8 million. Company directors gave Wayne Smith, Gormley's heir apparent and a veteran of 26 years with the comFormer Federal-Mogul Corp. CEO Dennis Gormley...
- Research articles 1997-03-24
