Severance Pay

Severance pay is compensation provided to an employee when they are terminated from their job, typically not due to misconduct. It often includes a lump sum or salary continuation for a specific period and may also cover benefits like health insurance. The amount and duration depend on factors like company policy, the employee's length of service, and the circumstances of their departure. Severance pay aims to provide financial support during the transition to new employment and is often outlined in employment contracts or company policies.