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Severance pay

Severance pay is additional payment (and potentially benefits) paid to the terminated worker upon termination. Severance packages may be predefined through agreements between the employer and the individual, or defined solely by the employer.

Terminated workers are not always entitled to severance pay upon termination, and employers are (in most cases) not legally obligated to provide severance. However, in certain circumstances (such as mass layoffs), terminated workers may be entitled to severance. Employers should always consult with their legal counsel regarding severance pay.

Zenefits currently does not support severance packages or any other payment at termination for companies who use third-party payroll provider. Those who have Zenefits Payroll, however, can add severance pay in both regular and off-cycle runs.

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