On cost, Samfiru is blunt about why a buyout program is cheaper than a mass termination, particularly at companies like Rogers where long-tenured employees would otherwise command significant severance. “With a termination, the law dictates what you have to pay employees, and that amount can be very significant,” he says. “A lot of these employers like Rogers have long-service employees, and that severance can add up quickly with a buyout or a voluntary package — there’s no requirement to pay anything, it’s really what you and the employee agree to.”
Voluntary severance packages: a good way to get rid of the old and the weak?
By Awais
