What is severance pay? Who is eligible?

Question

I live in Tennessee, US and have been working as an engineer for a large company for a little over 1 year. I am quitting the job because of personal reason. Will I be eligible for severance pay? (I heard that severance pay is only eligible when one gets fired... is it true?)

Answer 1

Severance pay is only available for those who are involuntarily terminated, and even then, it often depends on the cause of termination. Quitting for personal reasons is never a reason for severance pay. In fact, you are probably ineligible for unemployment either.

Answer 2

Fired = for sure no severance pay (essentially it is a "package" that the employer gives you), unemployement probably won't happen.

Quit = no severance, no unemployment

Lay-off = usually get a severance and unemployment.

I have been through 4 lay-offs in my 13 year career (2 I was affected and 2 not). I got a severance package both times (was 2 weeks pay for each year worked). One time I got unemployement (the other I already had another job and asked to be laid off).

Answer 3

If you quit you will not get severance or unemployment. You have to be fired to be eligible for severance. And you have to be fired for something they didn't outline when you were hired (like a rule they forgot to mention).

Answer 4

You were advised correctly. Severance is given in the event of a termination and more importantly when the organization is scared s*it that the person is going to sue them. It is what many of us call "Shut up money."

Answer 5

Severance pay usually refers to money given by the company to employees whose job is eliminated. If leaving is your decision, there is not motivation to encourage you to go.

Answer 6

Severance pay is compensation for surgical mishaps which involve the accidental amputation of limbs and other body parts.