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What is the rule of 70 for severance?

A severance agreement usually includes information on severance pay , the continuation of benefits and details on the legal responsibilities of both parties.

What is the standard for a severance agreement?

The severance pay offered is typically one to two weeks for every year worked, but it can be more. If the job loss will create an economic hardship, discuss this with your former employer. The general practice is to try to get four weeks of severance pay for each year worked.

What is a good severance agreement?

The general practice is to try to get four weeks of severance pay for each year worked. Middle managers and executives usually receive a higher amount. Some executives, for example, may receive pay for more than a year. A lump-sum severance payment that is considerable could push you into a higher tax bracket.

What is considered a good severance package?

Employers are not required to offer severance pay to most laid-off employees in most circumstances. If an employer chooses to, however, a common way to determine the amount of severance pay is two weeks of severance pay for each year of service.

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