Is the Discharged Employee Entitled to Severance?

Employees are only entitled to severance if provided for in an employment contract.

Severance, where provided for in a contract, can, especially with senior-level executives, be for quite a large amount of money. If there are severance provisions, typically there will be contractual definitions of termination for “cause”; in those instances, employees terminated for “cause” will usually not be entitled to severance.

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