When considering the termination payoff, it is important to have a two way dialogue with the employee which is often not done. This is because the companies assume the employees would seek high level of compensations while research has proven that employees tend to under state their compensation level when inquired by the company (Rynes et al, 2002).
As the Karen has been with the company for more than 5 years, the termination notice would have to be provided in the form of a 4 week notice whereby Karen can be given time and opportunity to seek employment elsewhere or decide on other alternatives for her career. Additionally the will also need to provide Karen with the option of taking utilizing her accumulated paid leave in the notice period or provide her with an encashment of her total accumulated and pending paid leave as per her gross weekly pay. The company would pay Karen the normal compensation for these 4 weeks while an additional 16 weeks pay should be provided to her as per the termination pay off.