Browse Definitions:
Definition

voluntary severance package

Contributor(s): Ivy Wigmore

A voluntary severance package is a financial incentive that’s offered to an employee in hopes that he will resign or retire. Unlike most severance packages, a voluntary severance package gives the employee the option to decline the offer.

 Generally, voluntary severance packages are offered at a time that will benefit the company by reducing the workforce and cost of salaries and benefits. High-earning long-term employees who are close to retirement age may be offered early retirement packages, for example, in the hopes of forestalling layoffs.  Because a voluntary severance package benefits both the employer and the employee who accepts the package, it is sometimes referred to as a "golden handshake." 

The golden handshake is closely related to the golden parachute, which is a severance agreement that provides an executive with a substantial package upon termination, usually in advance of some event that might have a less favorable outcome for the executive, such as an acquisition, a merger or a breaking scandal.  

Golden handcuffs refer to a different type of agreement, in which employees are effectively shackled by financial incentives designed to motivate them to stay with a company longer than they might otherwise do. 

This was last updated in November 2014

Continue Reading About voluntary severance package

Join the conversation

3 comments

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

How can certain individuals be denied a VSP yet others in similar positions are awarded the package. What rights does an individual have to fight the refusal of a VSP.
Cancel
If I don't want to take severance pay,but if I get made reduant an get the full redundancy package which is capped how much will I lose
Cancel
To day received a letter about company offering voluntary severance ,as this is has been put indirectly,as have never been discussed to me at any time what rights do I have,,
Cancel

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

SearchSecurity

  • copyright

    Copyright is a legal term describing ownership of control of the rights to the use and distribution of certain works of creative ...

  • keylogger (keystroke logger or system monitor)

    A keylogger, sometimes called a keystroke logger or system monitor, is a type of surveillance technology used to monitor and ...

  • password

    A password is an unspaced sequence of characters used to determine that a computer user requesting access to a computer system is...

SearchHealthIT

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • call tree

    A call tree -- sometimes referred to as a phone tree -- is a telecommunications chain for notifying specific individuals of an ...

  • mass notification system (MNS)

    A mass notification system is a platform that sends one-way messages to inform employees and the public of an emergency.

SearchStorage

  • CompactFlash card (CF card)

    A CompactFlash card (CF card) is a memory card format developed by SanDisk in 1994 that uses flash memory technology to store ...

  • email archiving

    Email archiving (also spelled e-mail archiving) is a systematic approach to saving and protecting the data contained in email ...

  • RAID (redundant array of independent disks)

    RAID (redundant array of independent disks) is a way of storing the same data in different places on multiple hard disks to ...

SearchSolidStateStorage

  • M.2 SSD

    An M.2 SSD is a solid-state drive (SSD) that conforms to a computer industry specification written for internally mounted storage...

  • NVMe (non-volatile memory express)

    NVMe (non-volatile memory express) is a host controller interface and storage protocol to enable a solid-state drive to use the ...

  • SSD RAID (solid-state drive RAID)

    SSD RAID (solid-state drive RAID) is a methodology commonly used to protect data by distributing redundant data blocks across ...

SearchCloudStorage

  • RESTful API

    A RESTful application program interface breaks down a transaction to create a series of small modules, each of which addresses an...

  • cloud storage infrastructure

    Cloud storage infrastructure is the hardware and software framework that supports the computing requirements of a private or ...

  • Zadara VPSA and ZIOS

    Zadara Storage provides block, file or object storage with varying levels of compute and capacity through its ZIOS and VPSA ...

Close