What's the Benefits of Employee Termination

Firing or laying off employees is never an easy task. But you can provide at least some financial support to the workers you have to terminate by providing them with benefits that can ease the stress they face when searching for a new job. Make sure your newly fired workers understand exactly upon which benefits they can rely as they begin their hunt for new employment.
Severance
The most important financial benefit for recently terminated workers might be the severance you offer them. Most companies offer workers a severance package that is based upon how many years they've logged with the business. For example, employees who have worked three years with the company might qualify for three weeks of salary and two weeks of vacation pay. Employees who have worked 10 years for the company might qualify for 10 weeks of pay and three weeks of vacation pay. Whatever the severance package is, make sure that your terminated employees know how much money they are eligible for and the steps they must take to receive it.
Depending on the size of your company, your terminated employees might qualify for COBRA benefits. Under this federal program, your workers might be able to remain on your company's group health insurance program for a limited number of months. In general, if your company has 20 or more employees, your fired workers will be eligible to participate in COBRA. Not all employees will want this; premiums are higher under COBRA. But many will, so make sure that your terminated employees understand how to apply for COBRA protection.
Job-Seeking Help
Many employers provide terminated workers with free job-seeking classes or workshops. Under these programs, job counselors will work with recently terminated employees to help them improve their resumes, brush up on their interview skills or master the art of the cold call. Working on these skills is especially important for employees who have worked at your firm for several years; they may be especially out of practice when it comes to hunting for a new job.
Unemployment Insurance
If you have laid off employees for no fault of their own, they will be eligible to collect unemployment insurance benefits. To ease your employees' transition, provide them with all the information they need to apply for unemployment insurance in your state, and how long they can expect to receive unemployment benefits. In Texas, for example, terminated workers must apply for unemployment benefits with Texas Workforce Commission either online or by calling the nearest Texas Workforce telecenter. Their weekly unemployment benefit will depend on the amount of their former salary.