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Business & Workplace Languagenoun · /ˈsev.ər.əns/

severance

In simple English

Severance is a financial package offered to employees who are laid off, fired, or whose positions are eliminated. In tech companies, severance negotiations are common during restructuring, company acquisition, or downsizing. The amount depends on factors like tenure, salary level, and local labor laws. For non-native speakers, understanding severance is important because tech layoffs are frequent, and severance discussions often involve legal and financial terminology. HR departments handle severance packages, and employees may negotiate terms with management or legal representatives.

What financial compensation do I receive when my company ends my employment?

At a glanceCEFR B2
Commonness4/5
Versatility3/5
FormalityCasualFormalFormal
Spoken ↔ WrittenSpokenWrittenBoth
Directness ↔ DiplomaticDirectDiplomaticNeutral
RegionUS and UK
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Say it like this

✓They offered a generous severance package to employees affected by the layoff.
✓The severance agreement includes three months of salary and continued health benefits.
✓She negotiated her severance terms before accepting the termination.

Real examples

in an HR meeting

"The company is offering two weeks of severance pay for every year of service."

in a team discussion

"If my role is eliminated, I want to understand what severance I am entitled to."

in a legal negotiation

"Our severance package includes base pay, unused vacation, and six months of health insurance."

Don't say this

Handle with care. Severance refers to compensation paid when employment ends, not to cutting code or features. Do not confuse with technical separation or code refactoring.

✕We need to severance this microservice from the main application.
✓We need to decouple or separate this microservice from the main application.— Severance is not used as a verb in tech contexts. Use decouple, separate, or sever instead.
✕The severance of our backend is complete.
✓The separation or decoupling of our backend is complete.— Severance refers to employment termination compensation, not technical architecture changes.
✕I received severance for fixing the bug.
✓I received a bonus for fixing the critical bug.— Severance is only for employment termination, not for performance or achievements.

Other forms

noun

severance

"The severance package was competitive compared to industry standards."

noun

severance pay

"Employees received two weeks of severance pay per year of employment."

noun

severance package

"The severance package includes salary, benefits, and outplacement services."

Often used with

severance packageThe complete compensation offered when employment ends
severance payThe monetary portion of severance compensation
severance agreementThe legal document outlining severance terms
negotiate severanceTo discuss and agree on severance terms with an employer
severance termsThe specific conditions and amounts of severance offered

Similar words

termination paySimilar but more general; includes all payments at termination
separation payAlternative term emphasizing the end of employment relationship
redundancy paymentUK-specific term for compensation when a position is eliminated

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Practice

Try it

4 quick exercises

Complete the sentence

1. After the company announced layoffs, HR provided details about the _______ package available to affected employees.

Spot the mistake

2. Which sentence uses severance correctly?

Pick the most natural phrasing

3. Your company is closing an office and offering financial support. How would you describe this?

Rewrite naturally

4. Rewrite this using severance: 'When the company ended my job, they paid me three months of salary and kept my health insurance for six months.'

Questions

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