Submitted by Arsinoexx t3_10mtgn5 in explainlikeimfive
Ahnikuh t1_j658e7v wrote
Are you talking about severance? There is usually a contract that goes along with it, often times preventing the employee from suing, working for a competitor, or talking publicly about the layoffs. Or if a company is doing poorly, the severance is incentive for the remaining employees to not look for new work as the boat sinks. If your coworker received 20k for getting fired, you're going to stick it out in hopes they lay you off next.
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