Termination Pay mean
If you are in the retail industry then you have no doubt at least seen advertisements about severance pay. I know I have but they are a little hard to understand. What does ” Termination Pay” mean? What is it for and why does retail advertise it?
To begin with let me explain to you what termination pay is and how it fits into the Retail Industry. You see retail workers in any industry are covered by various types of insurance coverage from theft to illness and injury. This means that even the smallest of errors can result in large bills from your pocket. As well as this, even in the event of an accident or even simple negligence on the part of one of your employees (including dismissal) can result in huge compensation charges.
That is where the term “Termination Pay” comes into play. It basically means that in the event of an accident, illness or injury you as an employer will be paid so much from your company’s budget to take care of the person affected by said event. This is different to what we normally think of when we hear the word ” Termination Pay”. This includes dismissal as well as sick leave.
Termination Pay mean – The Real Meaning Behind Termination Pay
So what does all this mean for Retailers? Well for example if you were employing five people, two of them will be laid off. Now normally these employees would receive a redundancy package of around four weeks’ notice, or around six months’ notice depending upon the company’s procedures. Assuming no claim and having worked for you for six months you would then receive a payout of around two months of salary, plus the two month redundancy entitlement. These numbers might not be too small considering that your total annual salary is in the region of eight to nine thousand pounds. This means that the actual amount of payout could be nearer to nine or ten thousand pounds.
If you then employed another person from the same company to take their place, and that person was then laid off; this second person would then receive around four weeks’ notice or around six months notice depending on your company’s policies. That means that your original employee would still receive a redundancy payment of around two months of salary plus the initial redundancy payment. This could well end up being worth substantially more than what you would imagine. So if you want to see termination pay in action you need to have your HR department keep up to date with all of your employees’ details including their weekly records.
You should also keep in mind that this is just an example and is in no way representative of every case where dlrs decide to apply for this kind of payout. There are of course some very large companies which employ hundreds or thousands of employees. Each of these employees has his or her own personal circumstances. It therefore makes sense to ensure you check with your HR department as well as the umpires before making any decisions. The last thing you want is for you to spend a week or so applying for the five million pound payout only for it to be declined by your HR department. Plus, you do not want to waste time applying for the payout only for it to be rejected by umpires because of some administrative error.