Common use of SEVERANCE ALLOWANCESEVERANCE ALLOWANCE Clause in Contracts

SEVERANCE ALLOWANCESEVERANCE ALLOWANCE. Severance allowance will be calculated by one of the two following methods, it being the choice of the affected employee as to which such methods of calculation is used: (i) One week's pay for each year of employment during his last period of continuous service, computed on the basis of forty (40) straight time hours at the employee's regular rate, the maximum severance allowance payable being thirty (30) weeks' pay. (ii) Two percent (2%) of his total earnings for the last period of continuous service, the maximum severance allowance payable being an amount equal to one thousand two hundred (1,200) hours at the employee's regular rate. (iii) When weeks of severance pay combined with the termination date carries into the following year the employee has the option to have the severance pay payable in the following year. The severance allowance will not be more than the employee would normally receive if he remained at work at forty (40) hours per week to his normal retirement date. At the time of separation, the employee shall have the option of receiving his severance allowance on termination, or he may elect to have his severance allowance held in abeyance for up to one (1) year from the date of termination. He may apply in writing at any time during the year, at which time his full severance allowance will be paid forthwith.

SEVERANCE ALLOWANCESEVERANCE ALLOWANCE. Severance (a) An employee with one or more years of continuous service for whom no job is available because of mechanization, technological change or automation will, upon termination, receive a severance allowance will be calculated by one of the two following methods, it being the choice of the affected employee as to which of such methods of calculation is used: (i) One week's pay for each year of employment during his last period of continuous service, computed on the basis of forty (40) straight time hours at the employee's regular rate, the maximum severance allowance payable being thirty (30) weeks' weeks pay. (ii) Two percent (2%) of his total earnings for the last period of continuous service, the maximum severance allowance payable being an amount equal to one thousand two hundred (1,200) hours at the employee's regular rate. (iii) When weeks of severance pay combined with the termination date carries into the following year the employee has the option to have the severance pay payable in the following year. The severance allowance will not be more than the employee would normally receive if he remained at work at forty (40) hours per week to his normal retirement date. At the time of separation, the employee shall have the option of receiving his severance allowance on termination, or he may elect to have his severance allowance held in abeyance for up to one (1) year from the date of termination. He may apply in writing at any time during the year, at which time his full severance allowance will be paid forthwith.