What can you tell me about formal severance policies and practices? What is the norm?
– Director, Administration; Insurance
While there are multiple variables, such as the nature of the terminations and size of workforce being reduced, the general consensus seems to be that 2 weeks per year of service is the norm. The range we’ve seen for the upper side of the scale is one month per year, with the low end being one week per year. Benefit continuation for the resulting severance period in many cases these days is also included, although you need to insure that the continuation is on the basis that the coverage comes on COBRA vs. as if the former employee was still employed.