severance pay

noun

Definition of severance pay

: an allowance usually based on length of service that is payable to an employee on termination of employment

Examples of severance pay in a Sentence

Recent Examples on the Web Firing the coach or GM would also mean severance pay in a year where the Vikings' revenue will be down without fans in the stands, and the team's injuries have undoubtedly come up in Zimmer's and Spielman's discussions with ownership. Ben Goessling, Star Tribune, "NFL QBs are getting intercepted less than ever; Kirk Cousins leads the league with 10 in 6 games," 19 Oct. 2020 Sometimes companies provide severance pay to avoid any potential lawsuits. Deborah Acosta, WSJ, "How to Negotiate a Better Severance Package If You Are Being Laid Off," 16 Dec. 2020 In most cases, severance pay isn’t required by law, but some companies have established policies for offering it. Deborah Acosta, WSJ, "What is severance pay and how does it work?," 16 Dec. 2020 If not, severance pay, unemployment benefits and savings will fill the gap. Mallory Moench, SFChronicle.com, "Golden Gate bus drivers losing jobs at troubled transit agency: ‘We won’t be able to stay above water’," 29 Nov. 2020 The law has been met with opposition from labor unions and politicians who sought to reject the reduction in severance pay and the introduction of indefinite labor contracts. Grace Sihombing, Bloomberg.com, "Indonesia Passes Law to Simplify Labor, Investment Rules," 5 Oct. 2020 The board also unanimously passed a $2.1 million severance package that includes four months of medical benefits and either four weeks of severance pay or $600 a week for ten weeks. Mallory Moench, SFChronicle.com, "Golden Gate Bridge district to lay off workers instead of raising tolls amid budget crisis," 13 Nov. 2020 In addition to the weekly workshop offered by Trade Adjustment Assistance, the local’s officers help workers transfer to other plants, maintain their health-insurance benefits, and receive severance pay. Dan Kaufman, The New Yorker, "Will Trump’s Broken Promises to Working-Class Voters Cost Him the Election?," 31 Oct. 2020 Edward Jones analyst Jeff Windau said even though costs were down, the railroad's results were hurt by some unusual expenses, including severance pay and higher state and local taxes. Josh Funk, Star Tribune, "Profit, revenue slump at Union Pacific, but volume improves," 22 Oct. 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'severance pay.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of severance pay

1943, in the meaning defined above

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The first known use of severance pay was in 1943

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Last Updated

10 Feb 2021

Cite this Entry

“Severance pay.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/severance%20pay. Accessed 26 Feb. 2021.

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