What are the laws governing severance pay?

In North Carolina, severance pay is not mandatory for employers. However, if an employer chooses to provide severance pay, there are certain laws governing severance pay for employees in North Carolina. Employers in North Carolina typically offer severance pay if an employee has been with the company for a number of years and has been laid off, fired, or otherwise terminated. It is important to note that the laws governing severance pay do not apply to employees who quit or are discharged for just cause. For employers that choose to provide severance pay, the severance must be based on the length of service provided by the employee. Generally, employers in North Carolina must provide 1 week of severance pay for each year of service if an employee has worked for them for 5 years or more. For those employees who have worked for less than 5 years, the employer may provide a minimum of 1 week of severance. The employer may also opt to provide additional severance beyond the minimum requirement. In addition, employers in North Carolina must provide a written notice of termination to an employee that includes the amount of severance pay and any other benefits the employee is entitled to receive. This written notice must be given to the employee no later than the day of their termination. Severance pay must then be provided to the employee within 24 hours of the notice being given. Employers in North Carolina that choose to provide severance pay are legally obligated to abide by the laws governing severance pay. The laws are in place to ensure that employees are properly compensated and provided with their due benefits when their employment is terminated.

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What are the laws governing severance pay?

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