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Typical severance packages offer one to two weeks of paid salary per year worked. Continuation of insurance benefits, assistance finding another job, and other perks can be negotiated.

Circumstances for giving severance pay vary by company, but organizations typically award it to employees who no longer have a job due to layoffs or downsizing. While less common, some companies give severance pay to employees terminated for performance issues.

Generally, you'll get one week to four weeks of pay per year of service, but it is common for employers to pay out two weeks of pay for each year at the company. Of course, every company differs in calculating total severance pay.

Severance May Not Be Available if You Quit An employment agreement will usually specify the conditions or circumstances which would entitle you to receive severance. Most often, when there is an agreement beforehand, an involuntary termination of your employment would require your employer to pay severance to you.

Dear [Employee Name], I regret to inform you that your employment with [Company Name] is terminated effective [date]. Four weeks of severance pay is being offered in exchange for signing the attached release of claims and returning the signed release to human resources no later than [date].

Severance packages may include extended benefits, such as health insurance and outplacement assistance to help an employee secure a new position. Employers offer packages to employees who are laid off, whose jobs are eliminated because of downsizing, or who retire.

A severance plan is a corporate document that establishes that the company will provide an employee with funds when involuntarily terminating the employment of an employee.

There is no single definition of an appropriate severance package, as they vary greatly by industry and company. However, severance packages typically include pay through the termination date and any accrued vacation time, unreimbursed business expenses, and an additional lump sum.

1. What should a severance package include? Your severance package should include information about your financial compensation under the agreementfor example, how much you will be paid and how it will be paidas well as how you will be compensated for your unused vacation and sick time.

Give appropriate notice. It's best to give your boss two weeks notice if you are resigning. Say thank you. Offer to help. Ask questions. Don't vent or complain. Keep your letter short. Use business letter format. Proofread and double-check before you send.