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 Under the new contract, the employees will receive severance pay of $2,000 for each year of work. Rio Yamat, Fortune, 31 Jan. 2024 Our union demands that all workers have fair treatment, job security, and sustainable compensation — including severance pay when applicable. Michaela Zee, Variety, 23 Jan. 2024 Advertisement Employees will receive at least six months of severance pay if laid off, in addition to being eligible for cash bonuses. Sarah Parvini, Los Angeles Times, 22 Jan. 2024 The legislation also prohibits employers from pressuring workers to sign away their rights through waivers, nondisclosure agreements or non-disparagement agreements in exchange for severance pay. Suhauna Hussain, Los Angeles Times, 13 Sep. 2023 Since gig workers aren’t considered employees, they’re afforded fewer job protections and are not eligible for severance pay. Paolo Confino, Fortune, 25 May 2023 Employees had been informed of their termination via brusque, impersonal e-mails—Musk is now being sued for hundreds of millions of dollars by employees who say that they are owed additional severance pay—and the remaining staffers were abruptly ordered to return to work in person. Ronan Farrow, The New Yorker, 21 Aug. 2023 The corrido has generated lots of buzz online, where rumors have spread that Piqué allegedly fired Melgar without severance pay after the caregiver found out about his affair with Clara Chía Martí. Christi Carras, Los Angeles Times, 22 Sep. 2023 Grindr offered a relocation stipend to remaining employees, and six months of severance pay to those who did not commit to in-office work. Caitlin Harrington, WIRED, 6 Sep. 2023 See More

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'severance pay.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1943, in the meaning defined above

Time Traveler
The first known use of severance pay was in 1943

Dictionary Entries Near severance pay

Cite this Entry

“Severance pay.” Dictionary, Merriam-Webster, Accessed 29 Feb. 2024.

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