Simple English definitions for legal terms
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A tin parachute is a type of employment contract that provides severance benefits to a corporate employee, usually below the executive level, in the event of a takeover. These benefits are not as valuable as those provided under a golden parachute. It is also known as a silver parachute.
Definition: A tin parachute is a provision in an employment contract that provides severance benefits to a corporate employee, especially those below the executive level, in case of a takeover. These benefits are usually less generous than those provided under a golden parachute. It is also known as a silver parachute.
These examples illustrate how a tin parachute works. In the event of a takeover, employees with a tin parachute clause in their contract will receive some form of compensation, although it may not be as generous as the benefits provided under a golden parachute. This provision is designed to protect employees from sudden job loss and provide them with some financial security during a period of transition.