Definition, Meaning & Synonyms
severance package
noun
ˈsɛvərəns ˈpækɪdʒ
Definition
A severance package is a set of benefits and compensation provided to an employee when they are laid off or terminated from their job.
Examples
- After being informed about his termination, he was offered a severance package that included three months’ salary.
- The severance package also covered health insurance for a limited time.
- Many companies provide severance packages to help former employees while they search for new jobs.
Meaning
It typically includes financial compensation as well as additional benefits that support the employee during their transition to new employment.
Synonyms
- termination benefits
- separation package
- exit package
