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SEVERANCE PAY POLICIES AROUND THE WORLD

2017

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Condition of SaleCopyright © 2017. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or be transmitted in any form or by any means, electronic or mechanical, photocopying, recording or otherwise, without the prior written permission of the publishers. No responsibility for loss occurring to any person acting or refraining from acting as a result of the material in this publication can be accepted by the authors or the publishers.

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PUBLISHED BY:MERCER1166 Avenue of the Americas, New York, New York 10036, United States

PUBLICATIONS DIRECTORCHRISY WILSON

PRODUCT MANAGERDUSTIN THOMAS

PRODUCTION MANAGERSUMIT BAJAJ

PROJECT MANAGERRAHI SARDANA

DESIGN MANAGERBHUPESH PERIWAL

ANALYSTSKARUNANJALI TANDON

KAVITA RAI

WRITER

AUSTIN LOTZ

COPYEDITORSANKITA RAWAT

DIVYA PRAKASH

DESIGNERSRAHUL KUMAR KHANNAWALIA

CONTENT TECHNICIANNIYATI RASTOGISAMPL

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4 MERCER'S GLOBAL PUBLICATIONS

5 INTRODUCTION 7 Report Structure

9 Reading the Report

17 SUMMARY OF KEY FINDINGS

30 AMERICAS31 Argentina

51 Brazil

72 Canada

97 Chile

117 Colombia

158 Mexico

218 United States

263 ASIA PACIFIC264 Australia

285 China-Beijing

305 China-Shanghai

325 Hong Kong

347 India

368 Indonesia

388 Japan

409 Malaysia

469 Philippines

491 Singapore

513 South Korea

534 Thailand

555 Taiwan

555 Vietnam

575 EUROPE, MIDDLE EAST, AND AFRICA598 Belgium

698 France

719 Germany

779 Italy

800 Netherlands

800 Romania

865 Russia

907 Spain

949 Switzerland

992 United Arab Emirates

1012 United Kingdom

1034 ABOUT THIS REPORT1035 Methodology

1040 Glossary

1042 ABOUT MERCER

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GLO

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In today’s competitive race to attract and retain highly skilled global talent, organizations require current, in-depth information on everything from local statutory benefits, to salary trends, to managing a diverse workforce. Through Mercer’s own extensive global presence, we collect and analyze data and insights that help companies take the actions necessary to support their human capital strategies. You can order any of the publications below by clicking on the title links or by visiting www.imercer.com/global.

FULL ACCESS TO ALL GLOBAL PUBLICATIONSSubscribe to our Talent All Access® Portal for exclusive online access to our entire suite of publications and tools.

HEALTH & BENEFITS

WORKFORCE & CAREERS

HANDBOOKS & GUIDES

Car Benefit Policies Around the World

Global Parental Leave Global Parental Leave Industry Scorecard

LGBT Benefits Around The World

Global Compensation Planning Report

Global Compensation Planning Report

20 Year Look Back

Short-Term Incentives Around the World

HR Guide to Doing Business

HR Atlas Asia Pacific

Worldwide Benefit & Employment Guidelines

Global Pay Summary International Geographic Salary Differentials

Total Employment Costs Around the World

Workforce Turnover Around the World

Compensation Handbook

Global Mobility Handbook

HR Management Terms

Vacation and Other Leave Policies Around the World

Severance Pay Policies Around the World

HR Atlas Latin America

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© 2017 MERCER LLC. 5SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

INTRODUCTIONParting is such sweet sorrow, but it can be a whole lot sweeter when both sides walk away amicably. Although no one looks forward to terminations, layoffs, or other forms of employee departure, most organizations recognize that a severance package can do a lot of good for all parties. For employers, severance pay policies can boost their employment brand, provide some protection against wrongful termination suits, and encourage former employees to return to the organization should the opportunity arise. For employees, the benefits are obvious: severance pay acts as a parachute to help cushion their re-entry to the job market.

Aces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe volum cuptasperem doluptat occus, serum net aut fugit qui alit doluptaquam dundusa quidis earum et quo dolest, nimus nustibus dolessi venient.

YOUR RESEARCH BEFORE CREATING A POLICY

Aces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe volum cuptasperem doluptat occus, serum net aut fugit qui alit doluptaquam dundusa quidis earum et quo dolest, nimus nustibus dolessi venient.

Aces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup.

DELIVERING THE PACKAGEAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe volum cuptasperem doluptat occus, serum net aut fugit qui alit doluptaquam dundusa quidis earum et quo dolest, nimus nustibus dolessi venient.Aces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet inum SAMPL

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© 2017 MERCER LLC. 6SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe volum cuptasperem doluptat occus, serum net aut fugit qui alit doluptaquam dundusa quidis earum et qAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe.

THINK IT OVEREossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe:

► Wossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe.

► Wossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe

► Wossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe

► Wossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe

► Wossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe

INTRODUCTION

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© 2017 MERCER LLC. 7SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

REPORT STRUCTUREAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe volum cuptasperem doluptat occus, serum net aut fugit qui alit doluptaquam dundusa quidis earum et quo dolest, nimus nustibus dolessi venient.

Aces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer.

SUMMARY OF KEY FINDINGSAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer.

REGIONAL SECTIONSAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer.

Eossiti oreiciat magnihi taerfer oritem ipsa:

► Wossiti oreiciat magnihi taerfer oritem

► Wossiti oreiciat magnihi taerfer oritem

► Wossiti oreiciat magnihi taerfer oritem

► Wossiti oreiciat magnihi taerfer oritem

► Wossiti oreiciat magnihi taerfer oritem

ABOUT THIS REPORT Aces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que:

► Wossiti oreiciat magnihi taerfer oritem

► Wossiti oreiciat magnihi taerfer oritem

INTRODUCTION

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N=286

MORE THAN ONCE PER YEAR

ANNUALLY

EVERY OTHER YEAR

UNDER WHICH OF THE FOLLOWING CIRCUMSTANCES ARE SEVERANCE PAYMENTS PROVIDED?

EARLY TERMINATION OF TEMPORARY EMPLOYEE CONTRACT

2%

19%

6%

74%

27% 96% 32%

AD HOC

N=282

INVOLUNTARY TERMINATION WITH CAUSE

INVOLUNTARY TERMINATION WITHOUT CAUSE

VOLUNTARY TERMINATION (INCENTIVIZED LAYOFFS)

RETIREMENT EARLY RETIREMENT7% 8% 11%

READING THIS REPORTThe following pages include tips and guidelines to help navigate the report content.

© 2017 MERCER LLC. 8SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

INTRODUCTION

HOW OFTEN DO COMPANIES REVIEW THEIR SEVERANCE PAY POLICY?

WHAT TYPE OF SEVERANCE PAY POLICY DO COMPANIES HAVE?

N=286

GLOBAL REGIONAL

LOCAL

LOCAL, BUT PARENT ORGANIZATION CONTROLS SOME MAJOR ASPECTS OF THE POLICY

SEVERANCE PAY POLICY

23%

37% 15%

Note: More than one response was permitted; percentages may sum more than 100%.

25%

COUNTRY

Some questions allowed more than one response. This is noted below the applicable questions.

The N= indicates the number of companies that responded to the question.

Percentages indicate the proportion of companies that indicated each type of response; this is also known as prevalence.

Retirement and early retirement can sometimes be offered or forced when an organization needs to cut back on staff.

An involuntary termination without cause also includes redundancies and layoffs.SA

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© 2017 MERCER LLC. 9SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

WHAT IS THE TIME PERIOD ON WHICH COMPANIES BASE THEIR SEVERANCE NOTICE PERIOD?

NOTICE PERIOD

INTRODUCTION

NUMBER OF MONTHS

NUMBER OF DAYS

NUMBER OF WEEKS

89% 3% 8%

N=88

WHAT IS THE LENGTH OF THE SEVERANCE NOTICE PERIOD COMPANIES PROVIDE TO AFFECTED EMPLOYEES?

ALL EMPLOYEE LEVELS EXECUTIVE MANAGEMENT PROFESSIONAL PARA-PROFESSIONAL

LESS THAN 7 DAYS 55% 36% 50% 50% 58%

MINIMUM OF 7 DAYS 5% 14% 21% 25% 17%

MINIMUM OF 10 DAYS 6% 14% 7% 8% 8%

MINIMUM OF 30 DAYS 14% 21% 14% 17% 17%

MINIMUM OF 45 DAYS 8% 0% 0% 0% 0%

MINIMUM OF 60 DAYS 11% 0% 0% 0% 0%

MINIMUM OF 90 DAYS 2% 0% 7% 0% 0%

MINIMUM OF 120 DAYS 0% 14% 0% 0% 0%

N= 64 14 14 12 12

NUMBER OF DAYS

COUNTRYSurvey respondents were provided the option of selecting the type of time measure — days, weeks, months — applicable to their policy.

In this instance, a low percentage of companies provide their notice period in months. This means that data from any follow up questions related to "months" may not be available as it is not a prevalent policy type.

Survey respondents were able to provide details for "all employee levels" or for specific groups (such as executives) if their policy varies based on career level.SA

MPLE

© 2017 MERCER LLC. 10SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

NUMBER OF WEEKS

NUMBER OF MONTHS

ALL EMPLOYEE LEVELS EXECUTIVE MANAGEMENT PROFESSIONAL PARA-PROFESSIONAL

1 MONTH 67% – – – –

2 MONTHS 17% – – – –

3 MONTHS 17% – – – –

4 MONTHS 0% – – – –

5 MONTHS 0% – – – –

6 MONTHS 0% – – – –

MORE THAN 6 MONTHS 0% – – – –

N= 6 – – – –

INTRODUCTION

Note: Insufficient data available.

COUNTRY

A small number of companies structure their policy around the number of weeks. The sample is too small to provide results for this country.

Most survey respondents in this example do not differentiate by career level. Details for "all employee levels" only are available.

An en dash indicates insufficient data to report a statistic.SA

MPLE

NUMBER OF WEEKS' PAY PER YEAR OF SERVICE

© 2017 MERCER LLC. 11SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

HOW MANY WEEKS OF SEVERANCE PAY IS PROVIDED PER YEAR OF SERVICE?

ALL EMPLOYEE LEVELS EXECUTIVE MANAGEMENT PROFESSIONAL PARA-PROFESSIONAL

1 WEEK 44% 8% 21% 34% 49%

2 WEEKS 47% 28% 47% 46% 36%

3 WEEKS 4% 17% 11% 5% 3%

4 WEEKS 3% 13% 10% 7% 3%

5 WEEKS 0% 0% 0% 1% 1%

6 WEEKS 1% 3% 1% 1% 1%

7 WEEKS 0% 0% 0% 0% 0%

8 WEEKS 0% 4% 4% 1% 2%

9 WEEKS 0% 1% 0% 1% 0%

10 WEEKS 0% 0% 0% 0% 0%

11 WEEKS 1% 0% 0% 0% 0%

12 WEEKS 0% 3% 2% 4% 4%

MORE THAN 12 WEEKS 0% 22% 4% 1% 1%

N= 102 92 100 101 98

FORMULA BASED ON YEARS OF SERVICE

INTRODUCTION

COUNTRY

The bottom row of the table indicates the sample size (or number of companies responding) for each column of data.

Information on severance payout formulas is provided based on a number of weeks or months of pay per year of service, or based on a combination of age and year of service.

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HOW MANY WEEKS OF PAY ARE PROVIDED FOR THE EMPLOYEE AGES AND YEARS OF SERVICE LISTED BELOW?

FORMULA BASED ON YEARS OF SERVICE AND AGE OF EMPLOYEE

INTRODUCTION

NUMBER OF WEEKS' PAY BASED ON YEAR OF SERVICE AND AGE

0-5 YEARS OF SERVICE 5-10 YEARS OF SERVICE

EMPLOYEE AGED 25

EMPLOYEE AGED 30

EMPLOYEE AGED 40

EMPLOYEE AGED 50

EMPLOYEE AGED 60

EMPLOYEE AGED 25

EMPLOYEE AGED 30

EMPLOYEE AGED 40

EMPLOYEE AGED 50

EMPLOYEE AGED 60

1 WEEK 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

2 WEEKS 30% 30% 20% 10% 10% 33% 20% 20% 20% 10%

3 WEEKS 0% 0% 10% 10% 10% 0% 0% 0% 0% 0%

4 WEEKS 0% 0% 0% 0% 0% 0% 0% 0% 0% 10%

5 WEEKS 20% 20% 10% 10% 10% 0% 0% 0% 0% 0%

6 WEEKS 10% 10% 0% 10% 0% 0% 0% 0% 0% 0%

7 WEEKS 0% 0% 10% 0% 0% 0% 0% 0% 0% 0%

8 WEEKS 0% 0% 10% 0% 0% 0% 10% 10% 0% 0%

9 WEEKS 0% 0% 0% 20% 10% 0% 0% 0% 0% 0%

10 WEEKS 20% 20% 20% 0% 10% 22% 20% 10% 20% 10%

11 WEEKS 0% 0% 0% 0% 10% 0% 0% 0% 0% 0%

12 WEEKS 10% 10% 10% 20% 10% 11% 10% 20% 0% 0%

MORE THAN 12 WEEKS 10% 10% 10% 20% 30% 33% 40% 40% 60% 70%

N= 10 10 10 10 10 9 10 10 10 10

COUNTRY

In many countries, one type of policy is more common than the other so sample sizes may vary.

Information on severance payout formulas is provided based on a number of weeks or months of pay per year of service, or based on a combination of age and year of service.

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© 2017 MERCER LLC. 14SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

SUMMARY OF KEY FINDINGSSEVERANCE PAY POLICIESAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe volum cuptasperem doluptat occus, serum net aut fugit qui alit doluptaquam dundusa quidis earum et quo dolest, nimus nustibus dolessi venientAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet. ut

SCOPE OF SEVERANCE PAY POLICY

GLOBAL REGIONAL LOCAL

LOCAL, BUT PARENT ORGANIZATION CONTROLS SOME MAJOR ASPECTS OF THE POLICY

10% 10% 10% 10%

inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe volum cuptasperem doluptat occus, serum net aut fugit qui alit doluptaquam dundusa quidis earum et quo dolest, nimus nustibus dolessi venient.of Aces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat.

N=1,111 SAMPL

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© 2017 MERCER LLC. 15SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

SUMMARY OF KEY FINDINGS

10% 10% 10%

RECOGNITION OF PRIOR SERVICE AFTER RETURNING TO ORGANIZATION

YES YES, FOR ALL OR THE MAJORITY OF

EMPLOYEES

Aces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe volum cuptasperem doluptat occus, serum net aut fugit qui alit doluptaquam dundusa quidis earum et quo dolest, nimus nustibus dolessi venientAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet.

YES, ON ACASE-BY-CASE

BASIS

N=111

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© 2017 MERCER LLC. 16SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

SUMMARY OF KEY FINDINGS

NOTICE PERIODAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe volum cuptasperem doluptat occus, serum net aut fugit qui alit doluptaquam dundusa quidis earum et quo dolest, nimus nustibus dolessi venientAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet.

SALARY IN LIEU OF NOTICE PERIOD

N=1,111

Aces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe volum cuptasperem doluptat occus, serum net aut fugit qui alit doluptaquam dundusa quidis earum et quo dolest, nimus nustibus dolessi venientAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet.

NO YES, EMPLOYEES MAY CHOOSE SALARY IN LIEU OF THE NOTICE

PERIOD

YES, EMPLOYEES MAY BE FORCED TO RECEIVE SALARY IN LIEU OF THE NOTICE

PERIOD (E.G., GARDEN LEAVE)

10% 10% 10%

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© 2017 MERCER LLC. 17SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

SUMMARY OF KEY FINDINGS

SEVERANCE PAYMENTSAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe volum cuptasperem doluptat occus, serum net aut fugit qui alit doluptaquam dundusa quidis earum et quo dolest, nimus nustibus dolessi venientAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet.

100% of companies require employees to sign an agreement in

exchange for their severance payout.

N=1,170

LUMP-SUM PAYMENT

COMBINATION OF LUMP-SUM AND SALARY CONTINUATION

SALARY CONTINUATION

50%

50%

50%

50%

50%

EMPLOYEE MAY CHOOSE LUMP-SUM OR SALARY CONTINUATION

VARIES BYEMPLOYEE LEVEL

Aces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe volum cuptasperem doluptat occus, serum net aut fugit qui alit doluptaquam dundusa quidis earum et quo dolest, nimus nustibus dolessi venientAces quunt re con.

METHOD OF SEVERANCE PAY DISTRIBUTION

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© 2017 MERCER LLC. 18SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

SUMMARY OF KEY FINDINGS

PAYMENT FORMULAAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe volum cuptasperem doluptat occus, serum net aut fugit qui alit doluptaquam dundusa quidis earum et quo dolest, nimus nustibus dolessi venientAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet.

METHOD OF CALCULATING SEVERANCE PAYMENT

N=1,111

A FORMULA BASED ON YEARS OF

SERVICE

A FORMULA BASED ON YEARS OF SERVICE

AND AGE OF THE EMPLOYEE

A FORMULA BASED ON AGE OF THE

EMPLOYEE

NONE OF THESE

10% 10% 10% 10%

Aces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe volum cuptasperem doluptat occus, serum net aut fugit qui alit doluptaquam dundusa quidis earum et quo dolest, nimus nustibus dolessi venientAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet.

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COUNTRY

STATUTORY REQUIREMENTSINDIVIDUAL TERMINATION

DEFINITION AND CONDITIONS OF FAIR AND UNFAIR TERMINATIONAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe volum cuptasperem doluptat occus, serum net aut fugit qui alit doluptaquam dundusa quidis earum et quo dolest, nimus nustibus dolessi venientAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet.

Aces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe volum cuptasperem doluptat occus, serum net aut fugit qui alit doluptaquam dundusa quidis earum et quo dolest, nimus nustibus dolessi venientAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet.

Aces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que solupta tiundus di restionsecus ium eos ea aut rehenie ndellup tatque re, sentibusciis inihilit as eossiti oreiciat magnihi taerfer oritem ipsa cuptam es quia assita cum sit, quos minisim iliquae conse pero blat porepe volum cuptasperem doluptat occus, serum net aut fugit qui alit doluptaquam dundusa quidis earum et quo dolest, nimus nustibus dolessi venientAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet.

SENIORITY PRIOR NOTICE PERIOD

From 0 to 3 months (trial period) 10 days

From 3 months to 5 years 10 months

More than 5 years 20 months

Aces quunt re con nullaborem etur, omnis eumquo quo et quo dolest, nimus nustibus dolessi venientAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam.

EMPLOYEE NOTICE PERIODAces quunt re con nullaborem etur.SAMPL

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PAY IN LIEU OF NOTICE PERMITTEDAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que:

SENIORITY PRIOR NOTICE PERIOD

From 0 to 3 months (trial period) 10 days

From 3 months to 5 years 10 months

More than 5 years 20 months

Aces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que.

BENEFITS PAID ON INVOLUNTARY TERMINATION OF SERVICEAces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que.

Aces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que.

Aces quunt re con nullaborem etur, omnis eumquo quo tecerumquias maxim aut haris quidebit et latem vellabo ritiusam ex excerumet, vellessitam ut inum ulparum sinus simus que.

► Wossiti oreiciat magnihi taerfer oritem

► Wossiti oreiciat magnihi taerfer oritem

BENEFITS PAID ON VOLUNTARY RESIGNATIONAces quunt re con nullaborem etur, omnis eumquo quo.

DESCRIPTION OF FINANCINGAces quunt re con nullaborem etur, omnis eumquo quo.

COLLECTIVE DISMISSALAces quunt re con nullaborem etur, omnis eumquo quo.

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N=11

MORE THAN ONCE PER YEAR

ANNUALLY

EVERY OTHER YEAR

UNDER WHICH OF THE FOLLOWING CIRCUMSTANCES ARE SEVERANCE PAYMENTS PROVIDED?

EARLY TERMINATION OF TEMPORARY EMPLOYEE CONTRACT

50%

50%

50%

50%

10% 10% 10%

AD HOC

N=11

INVOLUNTARY TERMINATION WITH CAUSE

INVOLUNTARY TERMINATION WITHOUT CAUSE

VOLUNTARY TERMINATION (INCENTIVIZED LAYOFFS)

RETIREMENT EARLY RETIREMENT10% 10% 10%

© 2017 MERCER LLC. 22SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

HOW OFTEN DO COMPANIES REVIEW THEIR SEVERANCE PAY POLICY?

WHAT TYPE OF SEVERANCE PAY POLICY DO COMPANIES HAVE?

N=11

GLOBAL REGIONAL

LOCAL

LOCAL, BUT PARENT ORGANIZATION CONTROLS SOME MAJOR ASPECTS OF THE POLICY

SEVERANCE PAY POLICY

10% 10%

10% 10%

Note: More than one response was permitted; percentages may sum more than 100%.

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NO MINIMUM

A MINIMUM OF 3 MONTHS

A MINIMUM OF 6 MONTHS

50%

50%

50%

50%

50%

A MINIMUM OF 12 MONTHS

A MINIMUM OF 18 MONTHS

Note: More than one response was permitted; percentages may sum more than 100%.

Note: More than one response was permitted; percentages may sum more than 100%.

© 2017 MERCER LLC. 23SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

DO COMPANIES CONSIDER ANY OF THE FOLLOWING IN ORDER TO AVOID LAYING OFF EMPLOYEES?

STOPPING OR REDUCING OVERTIME

VOLUNTARY TURNOVER

(INCENTIVIZED LAYOFFS)

REDUCINGCONTRACTORS

EARLY RETIREMENT

FOR ELIGIBLE VOLUNTEERS

REDUCING TEMPORARY

STAFF

RECRUITMENT FREEZES

SALARY FREEZES

SALARY CUTS IN RETURN FOR

TAKING TIME OFF WORK

10% 10% 10% 10% 10% 10% 10% 10%

N=17

WHICH TYPES OF EMPLOYEES ARE COVERED IN THE COMPANY SEVERANCE PAY POLICY?

N=11

WHAT IS THE MINIMUM LENGTH OF SERVICE REQUIRED FOR ELIGIBILITY IN THE COMPANY SEVERANCE PAY POLICY?

FULL-TIME EMPLOYEES

PART-TIME EMPLOYEES

CONTRACTORS/TEMPORARY EMPLOYEES

10% 10% 10%

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50%

50%

YES NO

N=11

NO MINIMUM

A MINIMUM OF 3 MONTHS

A MINIMUM OF 6 MONTHS

50%

50%

50%

50%

50%

A MINIMUM OF 12 MONTHS

A MINIMUM OF 18 MONTHS

YES, FOR ALL OR THE MAJORITY OF EMPLOYEES

YES, ON A CASE-BY-CASE BASIS

NO

N=11

© 2017 MERCER LLC. 24SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

ARE EMPLOYEES ALLOWED TO RETURN TO THE COMPANY AFTER RECEIVING A SEVERANCE PAYOUT?

HOW LONG DOES AN EMPLOYEE HAVE TO WAIT BEFORE RETURNING TO THE COMPANY AFTER RECEIVING A SEVERANCE PAYOUT?

IS THE EMPLOYEE’S PREVIOUS SERVICE PERIOD RECOGNIZED IF THEY RETURN TO THE COMPANY AFTER RECEIVING A SEVERANCE PAYOUT?

10% 10% 10%

WHAT IS THE MAXIMUM PERIOD OF ABSENCE ALLOWED FOR AN EMPLOYEE’S PREVIOUS SERVICE TO BE RECOGNIZED?

N=11

A MAXIMUM OF 3 MONTHS

A MAXIMUM OF 6 MONTHS

A MAXIMUM OF 12 MONTHS

A MAXIMUM OF 18 MONTHS

50%

50%

50%

50%

A MAXIMUM OF 24 MONTHS

MORE THAN 24 MONTHS

NO MAXIMUM

50%

50%

50%

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Note: More than one response was permitted; percentages may sum more than 100%.

YES, FOR ALL OR THE MAJORITY OF EMPLOYEES

YES, ON A CASE-BY-CASE BASIS

NO

N=11

ARE EMPLOYEE’S REQUIRED TO SIGN AN AGREEMENT IN EXCHANGE FOR THEIR SEVERANCE PAYOUT?

10% 10% 10%

WHICH OF THE FOLLOWING CONDITIONS ARE INCLUDED IN THE SEVERANCE PAYOUT AGREEMENT?

NONPOACHING NONDISPARAGEMENTNONCOMPETE NONSOLICITATION NONDISCLOSURE

10% 10% 10% 10% 10%

N=11

DO COMPANIES PROVIDE OUTPLACEMENT SERVICES TO EMPLOYEES WHO RECEIVE A SEVERANCE PAYOUT?

N=11

YES, FOR ALL OR THE MAJORITY OF

EMPLOYEES

YES, ON A CASE-BY-CASE

BASIS

NO

ARE EMPLOYEE’S REQUIRED TO SIGN AN AGREEMENT IN EXCHANGE FOR THEIR OUTPLACEMENT SERVICES?

10% 10%10%

N=11

YES, FOR ALL OR THE MAJORITY OF

EMPLOYEES

YES, ON A CASE-BY-CASE

BASIS

NO

10% 10%10%

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© 2017 MERCER LLC. 26SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

WHAT IS THE TIME PERIOD ON WHICH COMPANIES BASE THEIR SEVERANCE NOTICE PERIOD?

NOTICE PERIOD

NUMBER OF MONTHS

NUMBER OF DAYS

NUMBER OF WEEKS

10% 10% 10%

N=11

WHAT IS THE LENGTH OF THE SEVERANCE NOTICE PERIOD COMPANIES PROVIDE TO AFFECTED EMPLOYEES?

ALL EMPLOYEE LEVELS EXECUTIVE MANAGEMENT PROFESSIONAL PARA-PROFESSIONAL

LESS THAN 7 DAYS 33% 33% 33% 33% 33%

MINIMUM OF 7 DAYS 33% 33% 33% 33% 33%

MINIMUM OF 10 DAYS 33% 33% 33% 33% 33%

MINIMUM OF 30 DAYS 33% 33% 33% 33% 33%

MINIMUM OF 45 DAYS 33% 33% 33% 33% 33%

MINIMUM OF 60 DAYS 33% 33% 33% 33% 33%

MINIMUM OF 90 DAYS 33% 33% 33% 33% 33%

MINIMUM OF 120 DAYS 33% 33% 33% 33% 33%

N= 33% 33% 33% 33% 33%

NUMBER OF DAYS

COUNTRY

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NUMBER OF WEEKS

ALL EMPLOYEE LEVELS EXECUTIVE MANAGEMENT PROFESSIONAL PARA-PROFESSIONAL

1 WEEK 33% 33% 33% 33% 33%

2 WEEKS 33% 33% 33% 33% 33%

3 WEEKS 33% 33% 33% 33% 33%

4 WEEKS 33% 33% 33% 33% 33%

5 WEEKS 33% 33% 33% 33% 33%

6 WEEKS 33% 33% 33% 33% 33%

7 WEEKS 33% 33% 33% 33% 33%

8 WEEKS 33% 33% 33% 33% 33%

9 WEEKS 33% 33% 33% 33% 33%

10 WEEKS 33% 33% 33% 33% 33%

11 WEEKS 33% 33% 33% 33% 33%

12 WEEKS 33% 33% 33% 33% 33%

MORE THAN 12 WEEKS 33% 33% 33% 33% 33%

N= 3 3 3 3 3

NUMBER OF MONTHS

ALL EMPLOYEE LEVELS EXECUTIVE MANAGEMENT PROFESSIONAL PARA-PROFESSIONAL

1 MONTH 33% 33% 33% 33% 33%

2 MONTHS 33% 33% 33% 33% 33%

3 MONTHS 33% 33% 33% 33% 33%

4 MONTHS 33% 33% 33% 33% 33%

5 MONTHS 33% 33% 33% 33% 33%

6 MONTHS 33% 33% 33% 33% 33%

MORE THAN 6 MONTHS 33% 33% 33% 33% 33%

N= 7 7 7 7 7

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10%

10%

IS THERE A LIMIT ON THE AMOUNT OF ANNUAL LEAVE THAT MAY BE TAKEN DURING THE NOTICE PERIOD?

YES

NO, EMPLOYEES CAN TAKE AS MUCH TIME AS THE HAVE ACCRUED

© 2017 MERCER LLC. 28SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

YES, EMPLOYEES MAY CHOOSE SALARY IN LIEU OF THE NOTICE PERIOD

YES, EMPLOYEES MAY BE FORCED TO RECEIVE SALARY IN LIEU OF THE NOTICE PERIOD (E.G., GARDEN LEAVE)

NO

N=11

DO COMPANIES PROVIDE SALARY IN LIEU OF THE NOTICE PERIOD?

N=11

YES, FOR ALL OR THE MAJORITY OF

EMPLOYEES

N=11

ARE EMPLOYEES PERMITTED TO USE REMAINING ANNUAL LEAVE (E.G., PERSONAL DAYS, VACATION DAYS, ETC.) DURING THE NOTICE PERIOD?

10% 10% 10%

10% 10% 10%

YES, ON ACASE-BY-CASE

BASIS

NO

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© 2017 MERCER LLC. 29SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

WHAT METHOD OF PAYMENT IS USED FOR SEVERANCE PAYOUTS?

SEVERANCE PAYMENTS

EMPLOYEE MAY CHOOSE LUMP-SUM OR SALARY

CONTINUATION

VARIES BY EMPLOYEE

LEVEL

LUMP SUM PAYMENT

SALARY CONTINUATION

COMBINATION OF LUMP-SUM AND SALARY

CONTINUATION

10% 10% 10% 10% 10%

N=11

WHEN THE METHOD VARIES BY EMPLOYEE LEVEL, WHAT METHOD OF PAYMENT IS USED FOR SEVERANCE PAYOUTS?

WHICH OF THE FOLLOWING ARE INCLUDED IN THE FINAL SEVERANCE PAYMENT?

ACCRUED SICK LEAVE

ACCRUED ANNUAL LEAVE

PRO-RATED SHORT-TERM INCENTIVE

PRO-RATED CAR ALLOWANCE (IF APPLICABLE)

PRO-RATED BENEFITS

COMMISSIONS

NONE OF THE ABOVE

50%

50%

50%

50%

50%

50%

50%

Note: Insufficient data available.

N=11

Note: More than one response was permitted; percentages may sum more than 100%.

COUNTRY

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OF SERVICE

NONE OF THESEUSING A FORMULA BASED ON YEARS OF SERVICE AND AGE OF

THE EMPLOYEE

© 2017 MERCER LLC. 30SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

HOW ARE SEVERANCE PAYMENTS CALCULATED?

WHAT IS THE MINIMUM SEVERANCE PAYMENT PROVIDED TO AN EMPLOYEE?

N=11

WHICH FACTORS ARE USED TO CALCULATE THE SEVERANCE PAYMENT?

N=11

NO MINIMUM

A MINIMUM 1 WEEKS’ PAY

A MINIMUM 2 WEEKS’ PAY

50%

50%

50%

50%

50%

50%

50%

A MINIMUM 3 WEEKS’ PAY

A MINIMUM 4 WEEKS’ PAY

A MINIMUM 5 WEEKS’ PAY

A MINIMUM 6 WEEKS’ PAY

PAYMENT FORMULA

10% 10% 10%

Note: Insufficient data available.

COUNTRY

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© 2017 MERCER LLC. 31SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

HOW MANY WEEKS OF SEVERANCE PAY IS PROVIDED PER YEAR OF SERVICE?

FORMULA BASED ON YEARS OF SERVICE

Note: Insufficient data available.

NUMBER OF MONTHS' PAY PER YEAR OF SERVICE

HOW MANY MONTHS OF SEVERANCE PAY IS PROVIDED PER YEAR OF SERVICE?

ALL EMPLOYEE LEVELS EXECUTIVE MANAGEMENT PROFESSIONAL PARA-PROFESSIONAL

0.5 MONTH 33% 33% 33% 33% 33%

1 MONTH 33% 33% 33% 33% 33%

2 MONTHS 33% 33% 33% 33% 33%

3 MONTHS 33% 33% 33% 33% 33%

MORE THAN 3 MONTHS 33% 33% 33% 33% 33%

N= 12 12 12 12 12

COUNTRY

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© 2017 MERCER LLC. 32SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

FORMULA BASED ON AGE AND YEARS OF SERVICE

COUNTRY

HOW MANY WEEKS OF PAY ARE PROVIDED FOR THE EMPLOYEE AGES AND YEARS OF SERVICE LISTED BELOW?

NUMBER OF WEEKS' PAY BASED ON YEAR OF SERVICE AND AGE

0-5 YEARS OF SERVICE 5-10 YEARS OF SERVICE

EMPLOYEE AGED 25

EMPLOYEE AGED 30

EMPLOYEE AGED 40

EMPLOYEE AGED 50

EMPLOYEE AGED 60

EMPLOYEE AGED 25

EMPLOYEE AGED 30

EMPLOYEE AGED 40

EMPLOYEE AGED 50

EMPLOYEE AGED 60

1 WEEK 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

2 WEEKS 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

3 WEEKS 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

4 WEEKS 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

5 WEEKS 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

6 WEEKS 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

7 WEEKS 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

8 WEEKS 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

9 WEEKS 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

10 WEEKS 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

11 WEEKS 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

12 WEEKS 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

MORE THAN 12 WEEKS 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

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© 2017 MERCER LLC. 33SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

NUMBER OF WEEKS' PAY BASED ON YEAR OF SERVICE AND AGE

10-15 YEARS OF SERVICE 15-20 YEARS OF SERVICE

EMPLOYEE AGED 30

EMPLOYEE AGED 40

EMPLOYEE AGED 50

EMPLOYEE AGED 60

EMPLOYEE AGED 40

EMPLOYEE AGED 50

EMPLOYEE AGED 60

1 WEEK 10% 10% 10% 10% 10% 10% 10%

2 WEEKS 10% 10% 10% 10% 10% 10% 10%

3 WEEKS 10% 10% 10% 10% 10% 10% 10%

4 WEEKS 10% 10% 10% 10% 10% 10% 10%

5 WEEKS 10% 10% 10% 10% 10% 10% 10%

6 WEEKS 10% 10% 10% 10% 10% 10% 10%

7 WEEKS 10% 10% 10% 10% 10% 10% 10%

8 WEEKS 10% 10% 10% 10% 10% 10% 10%

9 WEEKS 10% 10% 10% 10% 10% 10% 10%

10 WEEKS 10% 10% 10% 10% 10% 10% 10%

11 WEEKS 10% 10% 10% 10% 10% 10% 10%

12 WEEKS 10% 10% 10% 10% 10% 10% 10%

MORE THAN 12 WEEKS 10% 10% 10% 10% 10% 10% 10%

N= 10 10 10 10 10 10 10

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© 2017 MERCER LLC. 34SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

20+ YEARS OF SERVICE

EMPLOYEE AGED 40 EMPLOYEE AGED 50 EMPLOYEE AGED 60

1 WEEK 10% 10% 10%

2 WEEKS 10% 10% 10%

3 WEEKS 10% 10% 10%

4 WEEKS 10% 10% 10%

5 WEEKS 10% 10% 10%

6 WEEKS 10% 10% 10%

7 WEEKS 10% 10% 10%

8 WEEKS 10% 10% 10%

9 WEEKS 10% 10% 10%

10 WEEKS 10% 10% 10%

11 WEEKS 10% 10% 10%

12 WEEKS 10% 10% 10%

MORE THAN 12 WEEKS 10% 10% 10%

N= 10 10 10

NUMBER OF WEEKS' PAY BASED ON YEAR OF SERVICE AND AGE

HOW MANY MONTHS OF PAY ARE PROVIDED FOR THE EMPLOYEE AGES AND YEARS OF SERVICE LISTED BELOW?

Note: Insufficient data available.

COUNTRY

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© 2017 MERCER LLC.

ABOUT THIS REPORTThis section provides information on the methods of collecting, collating, and analyzing data for this publication. Readers will also find a glossary of key terms.

METHODOLOGYSTATISTICSThe following statistics are presented in this report:

► Prevalence: The percentage of companies that provided a response to a question with a defined number of options to choose from. For example, a single response question or a check box (select all that apply) style question.

► In single response questions, the sum of all responses may not equal 100% due to rounding.

► In check box response questions, the sum of all responses will be greater than 100%.

► N or Sample Size: The number of companies that reported data for the statistic.

► Endash or “–”: The sample is too small to provide the statistic.

DATA MASKINGTo ensure the confidentiality of all companies that provide data to Mercer’s surveys, statistics have been “masked” by displaying an endash or “–” when minimum sample sizes are not met.

► A minimum of three data points are required to report the average and prevalence percentages.

► A minimum of four data points are required to report the 50th percentile or median.

► A minimum of five data points are required to report the 25th and 75th percentiles.

DATA SOURCES

WORLDWIDE BENEFIT & EMPLOYMENT GUIDELINESThe Statutory Requirements are sourced from Mercer’s 2017 Worldwide Benefit & Employment Guidelines (WBEG). This information is for guidance purposes only.

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ABOUT THIS REPORT

COMPULSARY SEVERANCETakes place when it is solely the company’s decision which employees it wishes to layoff or make redundant.

NONCOMPETERestricts employee to enter into or start a similar profession or trade in competition against the employer.

NONSOLICITATIONRestricts employees from soliciting customers or business opportunities from the employer for a certain period of time.

NONDISCLOSUREDefines the period of time during which the parties must keep information confidential.

NONPOACHINGRestricts from soliciting employees.

NONDISPARAGEMENTRestricts employees from taking any action that negatively impacts a company, its reputation, products, services, management, or employees.

NOTICE PERIODThe time period between the receipt of the letter of dismissal and the end of employment.

OUTPLACEMENTA service provided by the employer to help former employees transition to new jobs and re-orient themselves in the job market.

SEVERANCE AGREEMENT (ALSO CALLED REDUNDANCY AGREEMENT)A contract between an employer and employee documenting the rights and responsibilities of both parties in the event of redundancy.

SEVERANCE PAY (ALSO CALLED REDUNDANCY PAY)The compensation that an employer provides to an employee, in addition to the employee’s remaining regular pay, when he or she leaves employment at a company.

VOLUNTARY SEVERANCETakes place when a financial incentive is offered by the company to encourage employees to voluntarily resign, typically in the event of downsizing or restructuring.

SEVERANCE TERMS

© 2016 Mercer LLC. 3737© 2017 MERCER LLC. SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLESAMPL

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EXECUTIVE These senior-most employees in the organization generally include top executives and directors within the organization, or employees with managerial responsibilities at the top level of a business unit or organization. Executives focus on providing strategic vision and/or tactical/strategic direction across multiple functions or sub-functions. May also be referred to as Senior Executive or Function Head, or in the case of a sales executive Head of Sales/Marketing.

MANAGEMENT

These employees with important supervisory and managerial responsibilities are usually the higher levels within a business unit or organization. Management-level employees focus on managing people and implementing policies and strategies to meet the organization’s objectives. They typically report to senior managers and (other than sales) functional managers including finance, human resources, information technology.

EMPLOYEE CAREER LEVELSPROFESSIONAL Typically refers to jobs requiring a professional or technical qualification. They are individual contributors without supervisory responsibility, but may provide coaching/mentoring to less-experienced staff. They typically hold a university degree or full-trade equivalent.

PARA-PROFESSIONAL Typically includes roles that are semi-skilled or unskilled with nosupervisory or management responsibility. They do not requirea university degree, but may require formal professional trainingand certification, and may be paid on an hourly or a salariedbasis.

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© 2017 MERCER LLC. 39SEVERANCE PAY POLICIES AROUND THE WORLD — SAMPLE

ABOUT MERCER At Mercer, we make a difference in the lives of more than 110 million people every day by advancing their health, wealth, and careers. We’re in the business of creating more secure and rewarding futures for our clients and their employees — whether we’re designing affordable health plans, assuring income for retirement, or aligning workers with workforce needs. Using analysis and insights as catalysts for change, we anticipate and understand the individual impact of business decisions, now and in the future. We see people’s current and future needs through a lens of innovation, and our holistic view, specialized expertise, and deep analytical rigor underpin each and every idea and solution we offer. For more than 70 years, we’ve turned our insights into actions, enabling people around the globe to live, work, and retire well. At Mercer, we say we Make Tomorrow, Today.

Mercer LLC and its separately incorporated operating entities around the world are part of Marsh & McLennan Companies, a publicly held company (ticker symbol: MMC) listed on the New York, Chicago, and London stock exchanges.

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For further information, please contact your local Mercer office or visit our website at www.imercer.com

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