do businesses have to offer severance pay 
according to the u s department of labor no law requires employers to provide severance pay however if an employee s contract stipulates that they receive severance pay upon dismissal or if the employee handbook promises severance pay the company is legally obligated to follow through with those pledges additionally if the company makes a verbal promise to provide an employee with severance pay it must uphold that agreement 2regardless of whether a company offers severance pay the fair labor standards act flsa mandates an employer must pay terminated employees through their last day of work and the employer must also pay any accrued vacation time to employees 3