Parting Gifts Give to employees when they leave, so you'll get more while they're here.

When employees resign or are terminated, you don't have togive wages or benefits beyond paying them for the time they worked.Even so, most entrepreneurs offer some sort of severance package todeparting employees.

An attractive severance policy can benefit your company in twokey ways, says Wayne Hersh, a labor relations and employment lawyerwith the firm Berger, Kahn, Shafton, Moss, Figler, Simon &Gladstone in Irvine, California.

It can aid in hiring andretention. A severance policy that offers, for example,one week's salary for each year of service departing employeeshave put in may be an attractive benefit. Of course, you can exemptemployees who are terminated for cause. You may also include otherrestrictions, such as disqualifying employees from the severancepackage if they go to work for competitors or disclose confidentialinformation.