If your severance is paid over time, you might not be able to collect unemployment insurance benefits during that time, because the government agency that handles unemployment benefits might view your payments as wages. You should check with an attorney who specializes in employment law to see if that is the rule in your state. So some employers offer severance packages that include the cost of those payments. That can be a significant benefit to the employee, as the cost of continuing benefits can be hundreds of dollars per month. Some employers include job retraining or career placement services as part of their severance packages.
Some employers offer to write a good letter of recommendation as part of their severance package.
That can be important to an employee - especially if the employee had trouble with the employer and might have trouble finding a new job. Inc. All rights reserved.