Severance Payment Timing Clause Samples
The Severance Payment Timing clause defines when severance payments must be made to an employee upon termination of employment. Typically, this clause specifies a set period—such as within 30 days after the termination date—during which the employer is required to deliver the severance amount, and may outline whether payment is made in a lump sum or installments. Its core function is to provide certainty and predictability for both parties regarding the timing of severance compensation, thereby reducing disputes and ensuring compliance with agreed terms.
Severance Payment Timing. The amounts payable under Section 5 (other than the Earned Bonus, as applicable), to the extent taxable, shall be paid or commence to be paid within thirty (30) days after the Date of Termination (or such longer period as required in order to have an enforceable release, but in no event later than sixty (60) days after the Date of Termination); provided, however, that if the period applicable to Executive’s termination of employment begins in one calendar year and ends in a second calendar year, such payments to the extent they qualify as “non-qualified deferred compensation” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), shall be paid or commence to be paid in the second calendar year by the last day of such period. The Severance Amount shall be paid in a single lump sum and the Earned Bonus, if any, shall be paid at the same time as if the Executive had remained employed with the Company through the payment date.
Severance Payment Timing. The amounts payable under this Section 5 (other than the Earned Bonus, as applicable), to the extent taxable, shall be paid or commence to be paid within sixty (60) days after the Date of Termination; provided, however, that if the period applicable to Executive’s termination of employment begins in one calendar year and ends in a second calendar year, such payments to the extent they qualify as “non-qualified deferred compensation” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), shall be paid or commence to be paid in the second calendar year by the last day of such period. Half of the Severance Amount shall be paid in a single lump sum, the remaining half in twelve equal monthly installments and the Earned Bonus, if any, shall be paid at the same time as if Executive had remained employed with the Company through the payment date.