Severance

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Related to Severance package: severance agreement, severance pay

Severance

A settlement received after being released from a corporation. In the context of corporate governance, an agreement that assures high-level executives of their postions or some compensation and are not contingent upon a change in control.

Severance

A payment often (but not always) made in a lump sum that occurs when an employee is laid off or fired. Severance is sometime voluntary; that is, an employee may choose to quit and take a severance that is offered instead of staying and risking a layoff with no severance. The amount of severance is determined by the employee's length of time at the company, previous pay rate, and other factors. Accepting a severance makes one ineligible to collect unemployment insurance or to initiate a wrongful termination lawsuit. A severance exists in order to reduce the risk of the company when layoffs become necessary and to improve employee morale.
References in periodicals archive ?
But some people were getting N25,000 per year as severance package and that was shocking.
COVENTRY City Council is set to change the rules over top bosses' six-figure pay and severance packages. It comes as more senior bosses are expected to leave amid cuts.
Reuters has reported that Ford is still formulating a severance package for the Genk plant's 300 salaried workers.
Figures for 2011/12 show that in Stockton, Middlesbrough and Redcar and Cleveland a total of almost PS10m was paid out in severance packages.
Diann Stephens, human resources manager of Highland Telephone Cooperative (Sunbright, Tenn.), said she understands the morale issue of offering the bad apple a severance package, but said that it's actually a morale boost when a toxic employee leaves.
For full story, Former AHS CFO Allaudin Merali won't be getting severance package.
The severance package could well be the incentive that gets disgruntled workers out.
All employees have the right to choose not to be a part of the merged organization and in such cases they are entitled to a voluntary severance package.
News reports have put Kelly s severance package at between $2.8 million and $3.8 million, Grassley said.
Peter Fortune, the former chief operating officer, received a $1.9 million severance package in a compromise agreement reached three weeks before his May 15 departure Some $1.4 million came from accelerated options, and he received $56,000 in consideration for signing the termination agreement.
According to the Associated Press, the suit was filed on the behalf of 127 employees who allege Masco Builder Cabinet Group broke a contract involving a severance package. Masco has about 30 days to respond.
Now I'm getting laid off after 12 years of service, without a severance package and with a dwindling 401K.