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.]
American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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.
Random House Kernerman Webster's College Dictionary, © 2010 K Dictionaries Ltd. Copyright 2005, 1997, 1991 by Random House, Inc. All rights reserved.
References in periodicals archive ?
Depending on the size and scope of the payout, severance packages can also be called silver or tin parachutes. Golden parachutes are generally defined as those that exceed the IRS threshold for excessive severance payments, meaning that they equal or exceed three times the recipient's average salary for the prior five years.