Severance pay is something that most business owners provide to their employees when they are laid off when they leave the organization. Understanding the terms of Severance Pay is often confusing because a number of people believe that severance pay can be claimed only when they are laid off and if they choose to leave an organization they cannot rightfully demand for this money.
Although severance pay is usually claimed when you are laid off, this money is also provided to you when you quit your job on your own terms and you have served notice. In order for you to decide whether or not you are liable for severance pay you need to check with your employer and go through the terms that were given to you at the time of your joining. The amount of severance pay that you can claim also depends on the salary that you are drawing from the company and the terms that you had discussed with the employer while joining. Usually the severance pay amount is cut from your salary on a regular basis and the employer also adds to this amount each month which is safe and provided as a lump sum to you.
You can always consult a severance pay law firm or an expert who can guide you with right information with regards to whether or not you will be able to claim the severance pay depending on your nature of work. While this process does not take very long it is highly recommended that you keep all your documents ready and in place so that you will be able to claim for severance pay soon and you don’t need to struggle too much before the money is your account. Reading about severance pay can give you a lot of information.