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Severance pay has come under the spotlight due to a debate over India’s second largest software exporter, Infosys, paying Rs 17.38 crore to former chief financial officer Rajiv Bansal when he parted ways. Globally, law firms suggest, there are no guidelines or rule book that define when an employee can be given a severance package. Paying such a package has, however, been a practice in several countries, especially when an employee is told to resign or when layoffs are announced. Such a compensation is often offered to a departing employees who has confidential information about the organisation.
A report by Manpower Group states organisations in Europe and Asia-Pacific pay higher severance pay than counterparts in the US. While senior executives in the US who depart involuntarily receive as severance a little more than three weeks’ pay per year, Asian organisations give nearly four weeks per year, the report adds. Ayan Pramanik lists some notable severance packages:
A report by Manpower Group states organisations in Europe and Asia-Pacific pay higher severance pay than counterparts in the US. While senior executives in the US who depart involuntarily receive as severance a little more than three weeks’ pay per year, Asian organisations give nearly four weeks per year, the report adds. Ayan Pramanik lists some notable severance packages:
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Gary Cohn |
