General
severance
What does severance mean?
Compensation, often based on tenure, and sometimes continued benefits, provided to an employee upon involuntary separation, typically in a layoff. It cushions the transition to a new job.
"He negotiated three extra months of severance before signing the exit paperwork."
Origin
From 'sever' (to cut off); standard employment and HR term.
Frequently asked questions
What is severance?
It's compensation, often based on how long you worked there, given to an employee when they're let go, usually in a layoff, to help the transition.
Is severance the same as final pay?
No. Final pay is wages owed for time worked, while severance is extra compensation on top of that provided on separation.
Can you negotiate severance?
Often yes; employees sometimes negotiate more pay or extended benefits before signing exit paperwork.
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