payment made to an employee on termination of their employment caused by certain prescribed circumstances such as the merger or closing down of an organisation, economic recession, or technological change.
The final payment made to an employee when their employment is terminated. It includes amounts for accrued leave, leave loadings, and accrued pay for time already worked. In instances of redundancy, severance pay can also include redundancy pay.
A payment offered by some employers to terminated employees (usually those who are terminated through no fault of their own) that is designed to tide them over until new employment is secured.
Compensation given to a terminated employee.
An amount that an employer offers to employees who are laid off.
Funds, usually amounting to one or two months' salary, frequently offered by employers to workers who are laid off. No law compels employers to provide severance pay, although the employer may be legally obligated to do so if it was promised in a contract or employees' handbook.
A form of short-term salary continuation awarded to employees who are being terminated. Severance payments often equal one week's pay for each year of service.
A security benefit voluntarily offered by employers to employees who lose their jobs.
