What are Termination Benefits?

Termination benefits are cash and other services paid to employees when their employment has been terminated. The extent of these benefits may be based on company policy or they may be negotiated on an individual basis. The most common termination benefits are as follows:

Severance payment. A common termination benefit is a severance payment, which may be seniority-based, or perhaps a standard payment for all employees within a certain job classification who are being terminated.
Extended health insurance coverage. A major termination benefit is the provision of extended health insurance. This is a particular benefit for those who are infirm or who have large families.
Assistance in finding a new job. The human resources department of the employer may provide assistance with the job search activities of former employees.
Working space. If an employer is reducing its workforce, it will likely have excess office space available. If so, it may offer this space to terminated employees while they are conducting job searches.