As an employer, you are not obligated to pay severance to an employee who quits. Severance is typically paid when an employee is let go due to a reduction in force or some other type of termination. If an employee voluntarily leaves his or her job, there is no legal requirement for the employer to provide severance pay.
When an employee quits, my company provides a pension and vested stock option, which I consider the best thing to offer severance. Pensions are getting rare, and employees who gain an offer of early retirement will want to perceive how the offer may affect their pensions. Payments are usually based on your years of service, salary, and age before retirement, and hence, you should typically reach full retirement age to obtain the complete benefits. Similarly, if you have stock options, which haven’t completely vested, employees often request accelerated vesting options. You may also request an extension of the period in which you can work on your stock options.