Common use of Period of Severance Clause in Contracts

Period of Severance. For purposes of the Elapsed Time Method, a Period of Severance is a continuous period of time during which the Employee is not employed by the Employer. Such period begins on the date the Employee retires, quits, is discharged, or dies or, if earlier, the first 12-month anniversary of the date on which the Employee was otherwise absent from service. A Period of Severance will not commence if an individual is absent from work by reason of a Maternity or Paternity Absence. Solely for purposes of determining when the individual’s Period of Severance begins, the individual will be credited with the 12-consecutive month period beginning on the first anniversary of the first date of such absence. No Period of Severance shall occur due to an individual’s “qualified military service” (as defined in Code Section 414(u)) if the individual is entitled to reemployment rights under USERRA.