Employment or Job Termination Package - Kentucky 2025

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[1] ing to the Kentucky Unemployment Commission, severance payments are neither deductible nor disqualifying wages for weeks following separation.
Kentucky is an employee at will doctrine state. In Kentucky your employer can terminate you at any time, with or without reason, and you can quit at any time, with or without reason (provided there is not a written contract to the contrary).
A severance or exit package is a bundle of benefits offered to employees who are laid off, terminated, or, under specific circumstances, voluntarily leave their jobs. They most often include financial compensation, continuation of certain benefits, and placement services to find a new job.
Typical severance packages offer one to two weeks of paid salary for every year worked. You usually have a few weeks to accept a severance agreement, and once its signed, you may have a few days to change your mind.
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