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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. An employer may grant severance pay to an employee after termination of employment. The kind of severance pay and the eligibility of the employee, after the termination, are usually determined by the length of employment. However, the employer is not obliged to pay severance.