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 company offered up to $15,000 to cover relocation expenses, or six months of severance pay for those who chose not to move.

From Los Angeles Times

The issue of her severance pay and what’s understood as her ambition for the House of Lords are still hanging around.

From BBC

That means he will receive six months of severance pay.

From Los Angeles Times

“The agreement seems to preclude us from talking to him or him talking to us at the risk of losing $750,000 of outstanding severance pay,” one prosecutor said.

From Salon

The Prince’s Trust was founded in 1976 when then-Prince Charles used his severance pay from the Royal Navy to launch the nonprofit dedicated to helping unemployed young people in the United Kingdom get trained for jobs.

From Seattle Times