tin parachute

Also found in: Financial.

tin parachute

n. Slang
An employment agreement that guarantees a severance payment to employees who are dismissed after a company has had a change in ownership.

[On the model of golden parachute.]

tin′ par′achute

an employment agreement guaranteeing a worker compensation, esp. in the form of bonuses and benefits, in the event of dismissal as a result of a merger or takeover.
References in periodicals archive ?
The value of a tin parachute will vary significantly from company to company, says Siske, but will typically provide a severance payment linked to the recipients' years of service and/or their age, often with a cap, such as 1.