Common use of Eligibility for Severance Pay Clause in Contracts

Eligibility for Severance Pay. To become eligible for severance pay an employee must have completed not less than ten (10) years of continuous service in the employ of the Employer. The Employer will provide severance pay to non-continuous employees who have completed not less than ten (10) years of service on the following basis: i. The employee's months of service are totalled and divided by twelve (12) to get the actual worked years/months. The employee is then eligible to be paid one (1) week's pay for each full year of service. Partial years of service shall be paid on a pro rata basis.