I was laid off in 2021 and received a severance package that included 12 weeks of full pay and full healthcare benefits, which felt like I was still employed, minus the 401k match. After that period, I filed for unemployment. Recently, I learned that a friend who was laid off after 8 years at his company received a very different severance package. His deal required him to file for unemployment immediately, and his severance would only top up his unemployment benefits to match his regular pay for 16 weeks. This means his actual severance was only about 3 to 6 weeks of pay. I found this approach shocking and quite cheap on the company’s part. I always thought severance meant receiving a lump sum or continued pay before filing for unemployment. How common is it for companies to do it this way? It seems unfair to shift the financial burden to the state instead of providing proper severance.
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