Most companies don't grant extensions or have any formal procedure by which employees can appeal their severance. Payments continue, though, even if an employee finds work within the severance period. Most employers provide both medical benefits for a specified period and outplacement services. Lee Hecht Harrison has ranked industries based on the generosity of their severances. Clearly, one consideration for employers in determining the benefit's size is the reason for your exit, notes Paula Todd, a principal with consulting firm Towers Perrin.
Higher severance is common when the company changes hands.
If you don't have an employment contract spelling out your severance in your current job, try hard to get one next time. Then you'll know where you stand. Rest assured that employment contracts are no longer limited to top-tier company officials, says Todd. Think of it as the prenuptial of executive employment, she adds. Because performance bonuses are often a big part of executive pay, lots of companies take them into account when calculating the salary part of a severance, Todd says.