Laid off? Here’s how much severance you can expect

So you’ve come into work to find out it’s your last day. Years of service, age, position, industry and level of compensation all factor into a severance package, says Michael Wright, an employment lawyer with Cavalluzzo. But unless terms are spelled out in an offer letter or written employment agreement there’s no set rule to determine a payout, he warns. As these purely illustrative examples show, packages vary. Seek legal advice if you ever find yourself in this position.

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See which of the below scenarios most applies to you.

Name: Young and Employable

Age: 27

Position: Entry-level

Salary: $45,000 (plus 50% off company services)

Possible severance: Three months or $11,250 (plus continuation of 50% discount for that period)

Employers might push for two months, but it’s tough to land a job in eight weeks. Don’t expect much more than that. Someone at this age and experience should have an easier time finding an equivalent job and pay than someone in a more senior role with more experience.

Name: Mid-Life Crisis

Age: 45

Position: Junior manager

Salary: $88,000

Possible severance: 12 months or $88,000 (plus benefits and bonuses)

At age 45 most workers are still very marketable, but it could take time to find equivalent employment at a similar income level. It ’s worth noting, though, that someone who has worked a few years more or a few years less might b e entitled to the same severance. That’s key. You don’t just multiply years to come up with a severance payout.

Name: Not Ready to Retire

Age: 64

Position: Manager

Salary: $120,000

Possible severance: 24 months or $240,000 (plus pension contributions)

Being laid off near retirement age doesn’t mean you can afford to retire, or even want to. A big payout is possible, provided the affected employee is diligently looking for new work. Collecting a pension shouldn’t affect severance either, as it is essentially a form of deferred wages.