Severance Pay


Severance pay is often granted to employees upon termination of employment, which is usually based on length of employment for which an employee is eligible upon termination. The Fair Labor Standards Act (FLSA) has no requirements for severance pay. Severance pay is a matter of agreement between an employee and an employer (or the employee's representative). The Employee Benefits Security Administration (EBSA) may be able to assist an employee who did not receive severance pay required in his or her employment contract.





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