severance pay

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.

severance pay

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

Word History and Origins

Origin of severance pay¹

First recorded in 1940–45

Example Sentences

The terms of his resignation afforded him severance pay, a playoff bonus, a championship ring and the opportunity to have a day with the Stanley Cup, upon which his name was engraved.

From Washington Post

Because she wasn’t technically fired, she wasn’t eligible for severance pay, paid out unused time off, or job assistance that was offered to others who were laid off.

From Vox

Those who lost jobs could seek retraining, perhaps using severance pay or unemployment benefits to find work in another field.

From Time

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

From Project Gutenberg