severance pay

Example from the Hansard archive. Contains Parliamentary information licensed under the Open Parliament Licence v3.0
In fact, when firms close, worker claims such as severancepay often go unfulfilled.
In this event, although the burden of severancepay falls on employers, severancepay no longer plays the role of a direct dismissal cost.
In both, large dismissals are often covered by wage guarantee funds, the explicit role of which is to finance severancepay at insolvent firms.
In some countries, there exist government-sponsored insurance funds that cover severancepay resulting from plant closure.
However, there is much more variation regarding the treatment of benefits such as severancepay-indeed, worker benefits are not even mentioned in the bankruptcy statutes of some countries.
Given informality, and the coexistence of other formal sector social rights such as severancepay, unemployment insurance replicated existing inequality, and had a negative impact on labour market efficiency.
Hence, mandated severancepay below these levels should have no impact on employment outcomes.
Equivalently, one might argue that labor contracts are set in such a manner that severancepay does not cause any direct rigidities, for example, by buying insurance.
During the 1993–94 financial year severancepay was approved in respect of two teachers and early retirement for three.
From the
Hansard archive