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

  • case study

    - In a business context, a case study is a documented implementation of something, such as a practice, a product or a service. An organization might deploy, for example, a new business intelligence (... (WhatIs.com)

  • professional services

    - Professional services, in the IT context, are services that a contractor or product vendor provides to help customers plan, design, implement and manage technology projects and systems. (SearchITChannel.com)

  • paternalistic leadership

    - Paternalistic leadership is a managerial style in which a dominant patriarch takes complete charge of his subordinates, the employees in an organization. (SearchCIO.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 ...

Ask a Question. Find an Answer.Powered by ITKnowledgeExchange.com

Ask An IT Question

Get answers from your peers on your most technical challenges

Ask Question

Tech TalkComment

Share
Comments

    Results

    Contribute to the conversation

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