Severance Allowance

Severance allowance is activated at the time of final pay. There is a statutory minimum severance allowance, but many companies have agreements that pay more than this amount.

Earning	Description
IND LICENC	This earning calculates the statutory severance allowance. The salary base for the allowance is the gross salary average of the last three months or the gross salary average of the last 12 months, whichever is greatest.
IND LICENC 2	This earning is provided as sample data. You can use it if you have a severance allowance defined by the collective agreement with rules that differ from the statutory ones. If you decide to use it, you must determine when you want it to be triggered and adapt the calculation to meet your needs.

Note:

To qualify for this allowance, the payee should be laid off (except for reasons of gross misconduct) and should have had at least two years of uninterrupted service with the same employer. Fixed-term contractors, apprenticeship contractors, and other payees with some specific contracts are not eligible for the severance allowance.

These brackets are used to calculate this allowance:

• IND BR DT SPEC.

  This bracket controls, based on contract type, entitlement to the different allowances that can be paid when a termination occurs.

• IND BR FIN CONT.

  This bracket controls, by action/reason value, entitlement to the different allowances that can be paid when a termination occurs.

• IND BR IND LIC.

  This bracket can be used to define the values used to calculate the severance allowance. By default, this bracket returns the values defined by law (that is, payment of 1/10^th the monthly salary per year of seniority up to ten years, and payment of 1/15^the the monthly salary per year of seniority after ten years of employment). You can modify these values as needed.