D. Severance Policy

Consider offering a modest severance policy in your manual or handbook to reduce the chance of having to make a larger severance payment after the individual is fired. Some companies reduce the chances of paying larger settlements after a firing by establishing a limited policy that is followed consistently. For example, your company could state that upon termination for any reason other than for cause, a flat two weeks is paid in lieu of severance for workers with less than five years of service and flat four weeks for workers with more than five years service. Then, when all terminated workers receive the sums, regardless of length of service or seniority, a fired worker will have difficulty claiming that he/she has been treated unfairly and is entitled to more. Offering a sufficient amount of severance to all employees and sticking to that policy may be effective.