Megatherium Industries is experiencing a long-term slowdown in sales.Consequently,it needs to permanently lay off a number of its manufacturing hourly employees and also many operations managers.In order to buffer the impact of the layoff on these workers,Megatherium will voluntarily offer a security benefit known as ____ to its departing employees.

Question

Quizplus · Accepted Answer

Severance pay is a benefit that companies offer to their laid-off or terminated employees as a form of compensation for the termination of their employment. It is one way for companies to provide financial assistance to departing employees who may experience a more difficult time finding alternative employment. While unemployment insurance, outplacement compensation, and COBRA benefits are also forms of assistance for laid-off employees, severance pay is specifically designed to help alleviate the financial impact of job loss on affected employees.

Megatherium Industries Is Experiencing a Long-Term Slowdown in Sales