IBM's golden handshake to employees

Source: TheEconomicTimes
The severance package that IT giant IBM is expected to give employees selected for a layoff reportedly includes a lump sum severance payment as well as counseling and financial planning services.

According to media reports, the company will cut about 5,000 jobs in the United States. The job cuts will account for over 4 per cent of IBM's US workforce, which totaled around 115,000 at the end of 2008.

According to a report in Computerworld, here’s what the laid off IBM employees are slated to receive:

A lump sum separation payment equal to one week of pay for each fully completed six months of service based on the most recent date of hire, with a minimum of two weeks and a maximum of 26 weeks.

Eligibility for a continued IBM subsidy for medical coverage. The coverage period is three months for less than five years of service; six months for five or more years but less than 25 years of service, and 12 months for 25 or more years of service. Transitional group life insurance follows a similar formula.

Outplacement and career counseling, with reimbursement of up to $2,500 for job-related skills training completed within 12 months of departure date, among other services.

The ability to apply for other jobs within IBM, as well as take jobs overseas, but the pay will be at local rates. The company says overseas work "may not appeal to everyone, but it can be a good fit for IBMers who are interested in broadening their skills by living and working abroad, or for those with a cultural or heritage link to one of the countries where positions are open."