severance pay
/ˈsevərəns peɪ/
Meaning
Compensation or financial benefits paid to an employee whose employment is ended through no fault of their own, such as during layoffs or corporate downsizing. It is a formal term used in legal and HR contexts, often calculated based on the employee's length of service. It helps support workers while they look for a new job.
Examples
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Under the terms of her contract, she is entitled to three months of severance pay.
Under the terms of her contract, she is entitled to three months of severance pay.
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The company offered a standard package of two weeks' severance pay for every year of service.
The company offered a standard package of two weeks' severance pay for every year of service.
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He used his severance pay to cover his living expenses while searching for a new position.
He used his severance pay to cover his living expenses while searching for a new position.
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Many employees were shocked to learn that their severance pay would be taxed heavily.
Many employees were shocked to learn that their severance pay would be taxed heavily.
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The union is currently negotiating for better severance pay for the affected factory workers.
The union is currently negotiating for better severance pay for the affected factory workers.
Common Mistakes
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✗ He received a high severing pay after being laid off.
✓ He received high severance pay after being laid off.
The noun is 'severance,' not the participle 'severing.'
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✗ She got a severance pay from her boss.
✓ She received severance pay from her employer.
'Severance pay' is typically uncountable, so it is used without the indefinite article 'a' unless referring to a specific 'severance package.'
Related Expressions
Practice
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Employees who were laid off during the restructuring received six weeks of ___.
💡 Money paid upon termination.
Show answer
severance pay
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Your employment agreement details how much ___ you will receive if your position is eliminated.
💡 Formal term for termination compensation.
Show answer
severance pay