Recent Examples of severance pay from the Web
Through attorney Steve Pence, Pitino has denied involvement and promised to fight his termination, which would include no severance pay.
As a sop to the country's powerful labor unions, the new rules will force companies to pay higher levels of severance pay.
There’s no legal requirement under California law that employers provide severance pay upon termination of employment.
The severance package represents a compromise, according to Kelty, who said Martinson initially sought $37,000 in severance pay, two airfares to Anchorage, and a last day of work on Nov. 1.
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.
First Known Use of severance pay
Financial Definition of SEVERANCE PAY
What It Is
Severance pay refers to a payment from a company to an employee who is being discharged.
How It Works
Under certain circumstances, employers compensate an employee who is being discharged with a sum of money called severance pay. The specific amount may be related to the employee's salary and length of time with the company. In most cases, severance pay is paid to an employee who is being laid off due to internal changes within a company.
To illustrate, suppose Bob is one of two internal accountants for company XYZ. Due to restructuring, XYZ now needs only one accountant, and Bob's position is subsequently eliminated. Bob is laid off, as a result, and is given severance pay by XYZ when he leaves.
Why It Matters
In many cases, employees are made to leave a given company due to internal changes that eliminate their jobs. Severance pay is a compensatory measure that ensures that laid-off employees are compensated fairly not only for work done since their last pay cycle, but also for covering any expenses that may be incurred through no fault of their own between the time they leave their current job and find another position.
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