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I am a Senior Consultant on EY’s Digital Forensics team. Our team has been growing rapidly recently and we are looking to hire some folks out on the west coast, specifically for our SF and LA offices. We are hiring at the Senior and Staff levels (including entry level positions in LA). If you are interested in learning more about EY Forensics or learning more the position feel free to reach out!
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Mentor
“Thanks for working with us for the last X years. Unfortunately, this partnership is not working out for us, so we are going to end the relationship. Here is some cash to help ease the pain temporarily. Please do not make scene during this transition period. Good luck searching for your next job.”
I would not call it a benefit, but rather a “silence stipend.” They just want you to go away quietly.
So technically there is no law under FLSA that requires an employer to pay severance so I would have to say this is a benefit.
However severance / sub pay is very standard and used to protect the company from getting sued. So you get a small benefit while your employer gets the bigger benefit to avoid paying out larger settlements.
Eh...it's a bad benefit. To a point I get it ...the company is saying if we experience hardship and have to cut workforce we have a plan in place to protect you. As an employee your employer having that plan should be comforting. Companies that aren't self aware and well planned are scary and could leave you cut with no job and no money to cover a gap in employment or insurance.
However, I'm honestly curious how many times companies actually pay out those severances as described. A company cutting workforce isn't doing well, and I could see even with a plan established how it's probably hard to protect enough assets and money to pay out severance to cut employees.
As far as I know it's a benefit that the company provides as a last compensation after your employment is over. We all know that we paid for a days work and severance is not part of your daily compensation so it's considered as a benefit by the companies. That's all I know.
I wouldn’t count it as a benefit,as M1 said it’s cash to keep the employees quiet and not to go overboard and spread negativity that can destroy the goodwill of the firm..