SEVERANCE PAY Definition & Meaning

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severance pay

noun

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

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

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51�Թ� History and Origins

Origin of severance pay¹

First recorded in 1940–45

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Example Sentences

Examples have not been reviewed.

The email offered current federal employees the option of around eight months of severance pay, in exchange for an immediate resignation.

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Seeing as many of the people he promised severance pay never got it and are suing him, Democrats like Virginia Senator Tim Kaine are right to be urging their federal employee constituents not to accept his "offer."

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CNN reported that employees would not receive severance pay.

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

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

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