compensation paid by an organization to employees who leave because, through no fault of their own, the job to which they were appointed ceases to exist, as during rationalization, and no comparable job is available to them
severance pay in American English
US
extra pay given to employees who are dismissed through no fault of their own, usually based on length of time employed
Examples of 'severance pay' in a sentence
severance pay
I agreed with Flora that he probably couldn't or wouldn't fight the severance pay.
Anita Anderson SOMEBODY (2002)
A failed CEO these days gets fired - and is given millions in severance pay.