An “Exit Package” is a collection of benefits, compensation, and support offered to an employee when they leave a company, either due to resignation, retirement, or termination. The purpose of an exit package is to provide financial assistance and help the employee transition smoothly into their next career phase. Common components of an exit package may include severance pay, continuation of health benefits, payment for unused vacation or sick days, stock options, and access to outplacement services.
For instance, if a company undergoes downsizing, an employee might receive an exit package that includes two months of salary as severance, extended health insurance for six months, and access to job search support. The specific terms of an exit package can vary depending on the employee’s role, length of service, and the reasons for their departure.
Exit packages are often negotiated and documented in a severance agreement, ensuring both the employee and employer have a clear understanding of the terms.
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