severance pay

American  

noun

1. money, exclusive of wages, back pay, etc., paid to an employee who has tenure and who is dismissed because of lack of work or other reasons beyond the employee's control.

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severance pay British  

noun

1. compensation paid by an organization to an employee who leaves because, through no fault of his own, the job to which he was appointed ceases to exist, as during rationalization, and no comparable job is available to him

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Etymology

Origin of severance pay

First recorded in 1940–45

Example Sentences

See Examples For:

severance pay

They signed confidentiality agreements in return for severance pay, and fear that speaking publicly could hurt their chances of finding work in an industry which has a small network.

From BBC ● Aug. 4, 2026

At minimum, Baillie argues, he should have received $825,000 to $1.1 million in severance pay, based on company precedent.

From The Wall Street Journal ● Aug. 3, 2026

It accused Nexstar of pushing “to gut severance pay and insert onerous provisions into the union contract that limit workers’ ability to freely negotiate the terms of their own employment.”

From Los Angeles Times ● Feb. 27, 2026

The draft law reduces severance pay, allows payments in kind and restricts vacation usage, among other proposals that the General Confederation of Labor considers "regressive."

From Barron's ● Feb. 11, 2026

I searched for his severance pay on my desk, wondering who the devil had hired him in the first place.

From With a Vengeance by J. B. Woodley