You typically don't get a severance package if you quit or resign from your job voluntarily. Your employer does not have to pay you severance in this case, unless you are forced to leave because of unwanted changes to your job.It sounds as if the worker in this question quit and therefore foregoes any severance. But...
- Was that person rehired to a new position, or the same position?
- Was there a gap between the terms of employment, if so, how long?
- What was the reason for the termination?
- Was it just cause?
- Were they rehired under a new contract or brought back into their previous contract?
- Severance is legally required when terminations are without cause, and minimums are mandated by law in each jurisdiction, but courts factor in age, location, ability to find similar type of work and pay, as well as other variables when determining severance - very rarely is the minimum enough if a case goes to trial.
- Severance can hurt as an employer, and usually ego plays a big role in determining the amount of severance to pay for most executives; but the time, resources and costs associated with a drawn out filing or mediation are often much larger than a generous severance (we are not advocating that it is better or cheaper to pay more to make a problem go away, but these additional costs and the likeliness of them happening should be considered).
- Severance and terminations should always be a last resort, having a good progressive discipline process and policy is always the better solution.
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