Common Contracts
1 similar Severance Pay Agreement contracts
Severance pay agreement templateSeverance Pay Agreement • December 1st, 2021
Although it is stressful to lose your job, finances are not as tight when your employer pays separation or severance pay. Sometimes the employer pays because it is company policy or it appreciates the dedication of a long-term employee. However, some states require payment to employees under certain circumstances. There is a difference between separation and severance pay and the reasons for receiving either of them. The U.S. government passed the Fair Labor Standards Act to protect employees in the workplace. Part of FLSA covers payment of wages. It does not require employers to make any type of severance or separation pay when terminating workers. Some states have addressed this issue, such as requiring severance pay when a factory is closing permanently, while others do not make demands on the employer. If you are having a problem, then contact your local employment board or legal aid society for an explanation of laws in your state. Voluntary termination occurs when you agree to le
