Question

^{Course: Industrial Relationship}

Related to self-employment relations ( Severance Pay )

Severance Pay: is pay and benefits employees may be entitled to receive when they leave employment at a company unwillfully.

Required:

A) What have you learned about "Severance Pay"? Describe your own sentences and outlines.

B)  Consider how you can benefit from "Severance Pay" in your working life, and how "Severance Pay" can benefit you.

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(Please Explain Long)

Answer 1

A. The employment is the association between the employer and employee based on certain rules like time of servitude to be given by one to another. The employees would work for the employer based on such a contract between the two. However, if the employer finds that the manpower need is not there due to rise of technology or change of business or even closure the employees hired for more than a certain period as per the contract of employment has to be given the payment for such closure or termination of an employment contract from employer’s side with ‘Severance Pay’. This is the terminal amount as per the laws to be paid by the employer to the employee to have ended the contract before the time for the need of the business.

B. The employee may take the Severance pay and look for a new job that needs similar skills and experience that the employee who was in a contract with an employee may have. The payment of such nature doesn’t bar employees to sit back without a job but is compensation for early termination of the contract. So the employee would get good pay for his servitude with the prior business while also may earn from the next job which is helpful for an employee to earn a bit more than usual. Hence the payment of severance can benefit the employees to earn some money from the previous job and also get earning from the next one.