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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.
Typically, severance pay amounts to a week or two of pay for every year that the employee was with the company. The compensation that an employer provides to an employee who has been laid off, whose job has been eliminated, who through mutual agreement has decided to leave the company, or who has parted ways with the company for other reasons.