That'd only be worth doing if the cost of hiring a replacement and getting them up to speed is less than just paying 2 months' salary. Sometimes true, sometimes

That'd only be worth doing if the cost of hiring a replacement and getting them up to speed is less than just paying 2 months' salary. Sometimes true, sometimes not true. Beyond that it varies by state. In New South Wales, from what I can gather, the employee can cash out a pro-rata portion of the benefit upon termination if they've been employed for longer than 5 years, unless fired for misconduct. So you'd have to lay everyone off after 4 years 11 months to keep from paying out, which would increase the cost of employee churn even more.