severance pay

NOUN

payout to fired or laid-off worker

Synonyms

WEAK

discontinuance wage dismissal wage golden parachute

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

Unionized workers at Diageo’s plant in Amherstburg in December ratified a closure agreement that provided enhanced severance pay.

From The Wall Street Journal • Feb. 13, 2026

The draft law reduces severance pay, allows payments in kind and restricts vacation usage, among other proposals that the General Confederation of Labor considers "regressive."

From Barron's • Feb. 11, 2026

People who did not move to another role received severance pay based on how long they had worked at the company.

From BBC • Jan. 27, 2026

If you do get severance pay, be aware that the amount you receive is taxable.

From Salon • May 3, 2025

I searched for his severance pay on my desk, wondering who the devil had hired him in the first place.

From With a Vengeance by Woodley, J. B.