most competitive severance packages on the market

leedsquietman · Post by **leedsquietman** » Wed Dec 31, 2008 12:05 am

Redundancy is rarely a good thing. Even if the package suits some people and a certain % will be back on their feet quickly, others are going to really suffer - in Ontario, we are really in the merde. Our major economy is manufacturing, most of which is the auto sector. Ford, GM and Chrysler are the biggest employers. Or at least - they were - they have already laid off thousands and more will follow. It is estimated that Canada will lose 75,000 jobs over the next 2 years, 66,000 of which will be in Ontario and 50,000 are either car manufacturing or related industries (such as trim makers, tire manufacturers, window manufacturers and parts).

If you're a 50 year old guy who has been working at GM for the best part of 30 years and done nothing else, you will probably never get a job that pays anywhere like that kind of salary again. So, your redundancy package might get you through a year or two, but then you're 52, with limited work experience outside of auto manufacture, you'll end up stacking shelves in the A&P or if you're lucky get a job at a big box hardware store making pretty much minimum wage. Recession SUCKS.

beats me · Post by **beats me** » Wed Dec 31, 2008 12:56 am

It should also be mentioned that they generally tax the shit out of your severance package, way more than if it was your regularly scheduled check.

I guess cept for the lucky guy above who's company has managed to bypass tax laws

mkelly · Post by **mkelly** » Wed Dec 31, 2008 1:18 pm

beats me wrote:It should also be mentioned that they generally tax the shit out of your severance package, way more than if it was your regularly scheduled check.

Guess it depends on where you live. I live in the UK, and I will get 15 weeks wages tax free, as well as 7 weeks notice which is taxed. I think UK redundancy/severance payouts are only taxed above a certain threshold, and I think it's quite a high threshold.

beats me · Post by **beats me** » Wed Dec 31, 2008 2:14 pm

mkelly wrote:
beats me wrote:It should also be mentioned that they generally tax the shit out of your severance package, way more than if it was your regularly scheduled check.
Guess it depends on where you live. I live in the UK, and I will get 15 weeks wages tax free, as well as 7 weeks notice which is taxed. I think UK redundancy/severance payouts are only taxed above a certain threshold, and I think it's quite a high threshold.

Hm, I wonder if that's because the unemployment rate over there is generally a lot higher than over here so they figure why take out the taxes just to give it back to you in unemployment later.

mkelly · Post by **mkelly** » Wed Dec 31, 2008 2:42 pm

beats me wrote:Hm, I wonder if that's because the unemployment rate over there is generally a lot higher than over here so they figure why take out the taxes just to give it back to you in unemployment later.

You'll get affected in other ways. For example, I have mortgage protection that is delayed coming into effect based on how much of a payout i have from my employer. It might also have an impact on how soon i can start claiming unemployment benefits.

blakbeltjonez · Post by **blakbeltjonez** » Wed Jan 07, 2009 12:35 am

beats me wrote:Today at work we received a company wide email telling us how our severance package is calculated if/when we get laid off. Amongst all the other jargon was "one of the most competitive severance packages on the market" and I couldn't stop laughing.

Seriously, are corporations "competing" for who does the best layoffs? Is this something I should bring up at my next job interview? Should I ask for a detailed history of the company's mass layoffs and severance packages?

"And what kind of polyester parachute will you offer me when the company fails?"

it was info meant for the execs, minion! crawl back to your cubicle immediately!

most competitive severance packages on the market

Re: most competitive severance packages on the market