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I mean, as an American... I'm not even sure why companies give severance pay in the first place. It doesn't feel like something they should be obligated to do.
by meddlepal 6y ago
I mean, as an American... I'm not even sure why companies give severance pay in the first place. It doesn't feel like something they should be obligated to do.
- elihu 6y agoI'd guess it's mostly to maintain morale among the remaining employees. People who are on the fence between staying or leaving are a bit more likely to stick around if they know they'll get a severance package if they're laid off but nothing if they quit.
- evandijk70 6y agoThe employment contract is usually for an indeterminate amount of time. Breaking that contract is why severance pay is required.