A Formula of One-And-A-Half Weeks' Pay for Each Year of Service

question 56

True/False

A formula of one-and-a-half weeks' pay for each year of service, with a further one-week's pay for each year of age over age 45 is reasonable severance pay, with respect to employment law, on termination due to plant closure for a 50-year-old person with 29 years' service as a skilled machinist.

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Definitions:

Intrinsic Value

The inherent worth of an asset, security, or company that is determined through analytical methods and underlying perceptions of its true value, beyond its current market price.

Earnings Per Share

A company's profit divided by the outstanding shares of its common stock, indicating the company's profitability.

Trustee Services

Services provided by an entity (a trustee) who holds or manages assets or property for the benefit of a third party.

Trust Companies

Financial institutions that act as agents for individuals or businesses to manage, invest, and safeguard assets.