Earlier quoted context omitted.
Unless there is a contract with the employee, such as a collective bargaining agreement with a union, there is no legal reason a business has to pay an employee severance in the US. A business might pay an employee severance for morale purposes, good PR, and/or to entice the employee to sign agreements that reduce the business's future liabilities. If an employee agrees to quit their job in exchange for severance mon…
There's a difference between legal reasons and decency
It is mostly a benefit for those earning more than median incomes.