SEVERANCE PAY POLICY

This Severance Pay Policy (hereinafter referred to as” Policy”) applies to eligible employees of the [INSERT NAME OF THE COMPANY] (hereinafter referred to as “Us” or “we” or “Company”). This policy is designed to provide financial support and benefits to the employees who are involuntarily terminated, thus ensuring a smooth transition and compliance with legal requirements.

1. PURPOSE
   1. The purpose of this policy is to establish clear guidelines, as to how [INSERT NAME OF THE COMPANY] will provide severance with various other benefits to its eligible employees. This policy aims to provide financial assistance and benefits to eligible employees who are involuntarily terminated from their positions. The goal is to support them during their transition phase while ensuring compliance with all legal and Company obligations related to employment termination.
2. ELIGIBILITY
   1. Severance pay and other benefits are provided to employees whose jobs are terminated involuntarily due to the following reasons
      1. Company’s closure
      2. Relocation of operations
      3. Company’s restructuring
      4. Downsizing
      5. Position elimination
   2. Employees who are terminated for reasons such as misconduct or violation Company’s policy are not eligible for severance pay.
   3. To qualify for severance, employees must meet the following requirements:
      1. Employees who have completed minimum [INSERT THE NUMBER OF YEARS OF JOB COMPLETION] of working within the company are eligible for severance benefits.
      2. Eligibility for severance pay may also be determined by an employee’s role and position within the Company. The roles that qualify for severance pay [INSERT POSITION OF EMPLOYEE]. Employees outside these designated roles may not be eligible for severance.
3. SEVERANCE COMPENSATION
   1. Severance will be calculated based on the employee’s duration of service with [INSERT NAME OF THE COMPANY].
   2. Severance pay will be provided in either a lump sum fixed amount or as a continuation of regular pay at the discretion of the Company. The chosen method of payment will be communicated to the employee at the time of termination.
   3. In addition to severance pay, employees will be compensated for any unused vacation and paid time off (PTO) accrued up to the date of termination. This payment will be made in a lump sum along with the severance pay.
   4. Employees eligible for severance pay will also receive any earned but unpaid commissions based on sales and performance metrics up to the termination date. Commission payments will be calculated according to the existing commission structure and will be paid out in accordance with the Company policy.
4. SEVERANCE PACKAGE BENEFITS
   1. In addition to severance pay, eligible employees will receive the following benefits:
      1. Eligible employees will receive continued health insurance coverage for a period of [INSERT THE NUMBER OF YEARS OR MONTHS FOR WHICH HEALTH INSURANCE WILL BE COVERED] after termination.
      2. Apart from health insurance coverage, the severance package covers the cost of health welfare benefits such as gym memberships, Dental checkups or coverage for the following period of time [INSERT NUMBER OF YEARS OR MONTHS FOR WHICH OTHER BENEFITS WILL BE COVERED ].
      3. Employees will have access to outplacement services and job search assistance, to secure new employment opportunities.
      4. Employees will have access to training programs and educational resources aimed at up skilling or reskilling for new job opportunities.
      5. The severance package will provide options for employees to maintain their retirement savings plan, ensuring ongoing financial security.
      6. [INSERT ANY OTHER ADDITIONAL BENEFITS]
5. SEVERANCE AGREEMENT
   1. The payment of the severance package is contingent upon the employee’s signing of the Severance Agreement. This agreement will detail the terms and conditions associated with the severance package. By signing the Severance Agreement, the employee acknowledges their understanding of the terms outlined within the agreement.
6. NON-DISPARAGEMENT AND CONFIDENTIALITY
   1. Employees who receive severance pay agree not to make disparaging remarks or statements about [INSERT NAME OF THE COMPANY], its management, employees, or business practices. This includes any comments that may harm the company’s reputation or business interests. Additionally, employees must maintain the confidentiality of any proprietary or confidential information obtained during their employment. This obligation extends beyond the termination of employment, and any breach of confidentiality may result in legal action. By accepting severance pay, employees acknowledge their understanding and acceptance of these terms.
7. FAIRNESS AND TRANSPARENCY
   1. Our Company is committed to fairness and transparency in administering this policy. All decisions regarding severance pay will be based on employee’s performance and will be made without regard to race, gender, age, religion or any other protected characteristic. We value the contributions of every team member and are dedicated to ensuring a respectful and supportive transition for all employees.
8. RESPONSIBILITIES
   1. Our Human Resource Department is responsible for implementing and enforcing this policy. The Department will periodically review to ensure its effectiveness and alignment with Company’s goals and objectives and will take appropriate corrective action if a violation of this policy is found.
9. COMPLIANCE WITH THE LAWS REGULATIONS
   1. Individuals working within the Company must adhere to the required applicable laws and regulations. The employee must comply with company’s policies and procedures with respect and dignity. Employees and Supervisors must stay informed about the laws relevant to their roles and responsibilities and ensure that their actions and decisions align with legal standards of the Company.
10. CHANGES TO THE POLICY
    1. We reserve to right to update and make changes to this policy from time to time based on the working conditions of the Company. The Company on updating this policy will inform the members of the Company.
11. FURTHER INFORMATION
    1. For any queries or further Information regarding our Company or about this Policy, the concerned person can contact us through email [INSERT COMPANY’S EMAIL ADDRESS]
12. ACKNOWLEGEMENT
    1. We expect all employees to adhere to this policy of the Company. The Company will apply this policy consistently and fairly to ensure a harmonious and productive workplace for all.
    2. By signing below, you acknowledge that you have carefully read and understood the terms and contents of this policy.
    3. You acknowledge that you will follow the set guidelines of this policy as well as of the Company and failure to do so; the Company can take required action against such person.

COMPANY                    

[INSERT NAME OF THE COMPANY]

Authorized Signature

Print Name and Title

[INSERT SIGNING AUTHORITY AND DESIGNATION]