The formula to calculate the Employment Settlement is:
\[ ES = \frac{AS}{12} \times MP \]
Where:
An Employment Settlement is a compensation structure where an employee receives a lump sum payment based on their annual salary and the total months of pay agreed upon in the settlement. This type of settlement is often used in cases of employment termination or severance agreements.
Let's assume the following values:
Using the formula:
\[ ES = \frac{60,000}{12} \times 6 = 5,000 \times 6 = 30,000 \text{ dollars} \]
The Employment Settlement is $30,000.
Let's assume the following values:
Using the formula:
\[ ES = \frac{80,000}{12} \times 3 = 6,666.67 \times 3 = 20,000 \text{ dollars} \]
The Employment Settlement is $20,000.
