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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.
Severance pay is a payment made by the employer when the employee is separated from the job. Severance. pay is remuneration and is issued in calculating a workerâs benefit payment. How Severance Pay Can Affect a Workerâs Unemployment Benefit.