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/ËsÉvÉrÉns/. noun. Learner's definition of SEVERANCE. [singular] formal. 1. : the act of ending someone's employment. â usually used before another noun. a severance of employment. [+] more examples [-] hide examples [+] Example sentences [-] Hide examples. severance pay [=money given to someone who has been fired or laid off from a job]. She received a good severance package [=money and other benefits given when employment is ended] when she was laid off.
Human Resources. Severance pay is money that an employer might want to provide for an employee who is leaving their employ. Normal circumstances that can warrant severance pay include layoffs, job elimination, and mutual agreement to part ways, for whatever reason.