Laid Off but Not Necessarily Paid Off
Of course, Turner wasn't exactly a high-ranking executive. The Cibolo, Tex., man was one of the 17,000 WorldCom employees laid off on June 28. And one of many workers confused about how their companies allocate severance pay.</br></br>How do companies determine how much severance an employee receives? The question is important for many young workers who sought or are seeking jobs in the tech sector, which has, to put it mildly, been a volatile place to build a career. Knowing how much severance you can expect will help you plan your next move if you are ever laid off.</br></br>First of all, severance is not guaranteed. There is no federal law that says an employer has to give you anything when it sends you and your favorite red Swingline stapler packing.</br></br>Other countries have laws authorizing severance, however. In Canada, for example, if you have been with your employer for at least five years, you may be entitled to a week's pay for each week you were with the company, up to 26 weeks' salary.</br></br>Severance packages are fairly common in this country. A 2001 survey of 925 U.S. companies by the outplacement and career services firm Lee Hecht Harrison of New Jersey found that 79 percent had severance policies for their full-time employees. Contract workers were not usually covered.