Redundant Personnel

Does Laying Off Redundant Personnel Hurt Employee Mood?

Thanks in Advance.

No. But beware, it’s costly.

What do you mean?

Have a look at your income statement, you’ll find something called “severance pay” on the list of expanses. It’s the sum of money you pay to your employee when you fire him.

I don’t know how AS calculates it, but I was paying around AS$5,000 per employee fired whose salaries were around AS$1,000. But it’s quite easy to find out how much you have to pay: fire just one employee and see how much your severance pay changed.

Hope it’s clear now. ;)

Much clearer. Thanks.