Severance package in Indian IT cos.?

[Abhijit Kumar]

Hi All,

I plan to join a small company and everything seems okay except I have this thought of negotiating �severance package� with them. What�s the standard severance package for Indian IT companies? And is it a standard practice?

Thanks,

AK

[Sandip Sankeshwar]

Dude,I too work for small company but never heard this term.Is it one time given while joining?

[Ulf Dittmer]

"Severance package" refers to compensation being given in the event of the company laying off (or firing) an employee. As such it is not negotiated at the beginning of the employment, but at its end (if the company is willing to negotiate it at all, that is - often the company will just set the terms unilaterally).

[Prashant Ladha]

Even I am hearing this term "Severance package" for the first time.
After looking up for the meaning of this word, I can to the same defination as Ulf mentioned.

Very few companies in India would be offering this kind of a component in the salary package. I have heard of performance bonus, loyalty bonus, but never heard of severance package.

What the company usually do is that the company would pay one month salary if they are laying off a employee.

[David O'Meara]

"Prashant",
Welcome to the JavaRanch.

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[Mark Herschberg]

Originally posted by Ulf Dittmer:
"Severance package" refers to compensation being given in the event of the company laying off (or firing) an employee. As such it is not negotiated at the beginning of the employment, but at its end (if the company is willing to negotiate it at all, that is - often the company will just set the terms unilaterally).

While generally true, that's not always the case. For senior management level jobs in the US sometimes exit conditions/severance packages are included in the contract. Perhaps some Indian companies do this as well.

--Mark