Severance Pay Procedures Clause Samples

Severance Pay Procedures. (a) Severance pay shall be paid to employees with one (1) year or more service who are terminated because of changes in administrative procedures, automation, consolidation, or suspension of business. The amount of severance pay shall be one (1) week at the employee's current regular salary for each year of service, to a maximum of ten (10) weeks. (b) An employee who chooses to be laid off and placed on the recall list may elect to terminate during the recall period and be paid the employee's severance pay entitled upon termination or expiration of recall.