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Severance in companies tied to tenure?

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Anonymous User at Taro Communitya year ago

If someone was in a company for 5 years out of which some years were in one country while he was laid off in another country, What is the general guideline wrt severance payment?

Is it paid on pro-rated basis or total months would simply be multiplied with the monthly salary of place where they were laid off from?



  • 1
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    Tech Lead @ Robinhood, Meta, Course Hero
    a year ago

    This is a fairly specific tactical question, so I asked ChatGPT 😅. Here's what it said:

    Severance payment guidelines can vary depending on the country, the specific circumstances, and the company's policies. However, I can provide you with a general understanding of how severance payments are typically handled in such situations.

    In many cases, severance payments are based on the employment laws and regulations of the country where the layoff occurs. These laws often outline the minimum severance entitlements that employers must provide to employees who are laid off or terminated. The specific details can vary significantly between countries.

    When an employee has worked for a company in multiple countries, it is common for the severance payment to be based on the employment laws and regulations of the country where the layoff occurred. This means that the severance payment would typically be calculated according to the laws and regulations of the country in which the employee was laid off, rather than being based solely on the months worked in that specific country.

    The calculation of the severance payment can also depend on factors such as the length of employment, the employee's salary, and any additional benefits or allowances specified in the employment contract or applicable labor laws.

    It is important to note that this is a general guideline, and the specific details can vary widely depending on the country and the company's policies. It is advisable to consult the employment laws and regulations of the relevant countries or seek legal advice to understand the specific severance entitlements in a particular situation.

    It seems like it varies a lot based on:

    1. Laws and regulations of where you were laid off
    2. Whatever leeway the company has after complying with #1

    I feel like severance is generally calculated based on your current pay though? Even ignoring location, people can still get raises while working in the same region which drastically changes their TC.

    I also recommend this video: How To Recover After You've Been Laid Off In The Tech Industry

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    Tech Lead/Manager at Meta, Pinterest, Kosei
    a year ago

    Which company do you work for, and where? You might get better answers from the community with that info. I don't think you should assume that your severance will be tied to tenure.

    If the startup is strapped for cash (presumably they are, if they're doing layoffs), all laid-off employees may get the same severance (e.g. a month or so).

    A top company (FAANG or equivalent) will generally give more severance based on years of service, but I don't think there's a "norm", especially in your case given the complication around living in another country.