Submitted by Arsinoexx t3_10mtgn5 in explainlikeimfive
LochFarquar t1_j65o8bw wrote
Reply to comment by DarkAlman in eli5 : Why do some companies make huge payouts when someone is fired? by Arsinoexx
This is good. I would just add that in many cases companies will make a severance payment in exchange for a waiver of claims. Better to pay someone $5k or $10k to leave on good terms than have them leave on bad term and find a lawyer to bring a wrongful termination claim. That amount can be plowed through very quickly in legal fees.
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