4 ms·
How is it unavoidable? If the employee leaves on their choice, is severance paid?
by lonelappde 6y ago
How is it unavoidable? If the employee leaves on their choice, is severance paid?
- dgoldstein0 6y agoI think they mean unavoidable from the company's point of view - they can't make you quit, so when they hire you, they have to assume if they ever need to lay you off, they'll need to afford your severance.
- _dps 6y agoYes — I was slightly incomplete in my description, but you are exactly correct about what I meant. Company liabilities include things you are obligated to pay under uncertain future circumstances, so accountants have to make sure that such liabilities can be handled if they ever arise.