What is a reserve payment?

Article author
Ercus Finn-Phillips
  • Updated

When an employee is terminated, they are usually entitled to statutory severance payments. Remote collects reserve payments on a client’s behalf in order to protect against any large or unexpected severances.

Reserves are an industry standard, and any unused amounts are refunded upon an employee's resignation or termination.

Why would a reserve be required?

Remote takes a number of factors into consideration when deciding on reserves, these include the financial exposure associated with an account and the countries employees are being hired in.

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