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What is Severance Pay ?

Severance pay is money that an construction employer might want to provide for an employee who is leaving their employ. Normal circumstances that might warrant severance pay include layoffs, job elimination, and mutual agreement to part ways for whatever reason. Severance pay usually amounts to a week or two of pay for each year of service to the construction employer. In some instances, a severance package might include extended benefits and outplacement assistance.

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