A formula of one-and-a-half weeks' pay for each year of service, with a further one-week's pay for each year of age over age 45 is reasonable severance pay, with respect to employment law, on termination due to plant closure for a 50-year-old person with 29 years' service as a skilled machinist.

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Quizplus · Accepted Answer

This formula exceeds the minimum statutory requirements in many jurisdictions, providing a more generous severance package that takes into account both the length of service and the age of the employee, which can be seen as reasonable especially in cases of plant closures where finding similar employment may be challenging for older, long-term employees.

A Formula of One-And-A-Half Weeks' Pay for Each Year of Service