Employers are required by law to provide severance pay to employees who have been involuntarily terminated.

Question

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Severance pay is compensation designed to assist laid-off employees as they search for new employment.Although no federal law requires U.S.companies to pay severance,a recent study found that although over half of organizations gave severance pay to all departing employees,17.7 percent made payments to selected groups only.

Employers Are Required by Law to Provide Severance Pay to Employees