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<< Back to FAQ/Fact list Q: Do I have to give severance pay when I fire someone? A: The law does not require any type of severance pay to be granted to any employees, regardless of whether it is a termination because of performance or a lay off. Because of civil rights issues, if severance pay is granted, make sure that it is offered consistently and impartially with all employees based off the standards your company sets. For instance, if you offer one-week severance for a male employee who has been with the company for one year, make sure you offer the same for a female. Keep in mind that when you offer any type of severance package for the first time, you are setting precedence for the future. |