What is severance package? - Definition from WhatIs.com

Definition

severance package

Part of the Business terms glossary:

A severance package is the contracted pay and benefits provided to an employee whose job is terminated. 

Severance agreements specify what will be provided, as well as terms and conditions under which the employee might forfeit some or all  of his rights. Money and benefits in a severance package might include:

  • Pay in lieu of notice.
  • Pay based on term of employment or the expected period of unemployment.
  • An extension of medical and dental benefits for a specified time period.
  • Stock options. 

A voluntary severance package offered as an incentive for an employee to retire prematurely is sometimes referred to as a golden handshake. 

This was last updated in July 2013
Contributor(s): Ivy Wigmore
Posted by: Margaret Rouse

Related Terms

Definitions

  • digital marketing

    - Digital marketing involves the various efforts by a company to connect with customers through digital and online communication channels, including email, geolocation and mobile marketing, social me... (SearchCRM.com)

  • 360-degree customer view

    - The 360-degree customer view is the idea that companies can get a complete view of customers by aggregating data from the various touch points in which consumers interact with companies. (SearchCRM.com)

  • just-in-time manufacturing (JIT manufacturing)

    - Just-in-time (JIT) manufacturing is designed to avoid the waste associated with overproduction, waiting and excess inventory, three of the seven waste categories defined in the Toyota Production Sy... (WhatIs.com)

Glossaries

  • Business terms

    - Terms related to business, including definitions about project management and words and phrases about human resources, finance and vertical industries.

  • Internet applications

    - This WhatIs.com glossary contains terms related to Internet applications, including definitions about Software as a Service (SaaS) delivery models and words and phrases about web sites, e-commerce ...

Tech TalkComment

Share
Comments

    Results

    Contribute to the conversation

    All fields are required. Comments will appear at the bottom of the article.