If you are wondering about your severance entitlement, there are a few questions that go into deciding the amount of the severance pay. Firstly, check if there is an employment agreement that outlines or defines how much severance you as an employee should receive in any given circumstance. If there is, you have to consider if it’s legal and if its legal, you have to follow it. Outside of an employment contact or specific agreement about severance, a judge looks at common law, which is the default and that helps them determine the amount of severance an employee should receive in a situation of termination without cause. The judge then calculates the severance amount based on a few questions:
1. How old is the employee
2. How long has the employee worked for?
3. What kind of job employee is doing?
4. How long will it take the employee to find a comparable job in regard to his/her qualifications, training and experience.
Finally, the judges look at precedents, which are the comparable. What did other employees in a similar situation got rewarded by the judges in the court of law. Keeping these things in mind, judge uses a severance calculator tool to figure out how much you should receive as a severance pay from your employer.