English · Work & Business

severance

/ˈsev.ər.əns/

[/ˈsev.ər.əns/]

payment on leaving a job

Advancednoun

Definition

Money paid to an employee when their job ends, often when they are laid off.

Example

When the company closed, each worker received several months of pay as severance.

When the company closed, each worker received several months of pay as severance.

Etymology

From 'sever' (Old French 'severer', from Latin 'separare', to separate) plus '-ance'.

How & Where It’s Used

Used in employment for end-of-job pay; also means the act of cutting off.

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