severance pay

USAGE SUMMARY

"severance pay" is a correct and usable phrase in written English.
You can use it to describe the amount of money an employee is entitled to receive when they are laid off or leave their job. For example, "The employee was relieved to receive a generous severance package when they were laid off."

✓ Grammatically correct

Academia

News & Media

Science

Human-verified examples from authoritative sources

Exact Expressions

59 human-written examples

(vi) Severance pay (including disability severance pay).

Cornell University

Separation allowance or severance pay.

Cornell University

He has foregone his severance pay.

The Guardian

(c Separation allowance or severance pay.

Cornell University

Severance pay will last a year.

The New York Times

Good severance pay will not be enough.

The New York Times - Magazine

Eventually they won concessions, including severance pay.

The New York Times

They were given two weeks' severance pay.

The New York Times

In consideration, she received severance pay in installments.

Cornell University

20 CFR § 211.10 - Separation allowance or severance pay.

Cornell University

Human-verified similar examples from authoritative sources

Similar Expressions

1 human-written examples

His severance-pay wheeze could be disallowed by Brussels.

The Economist

Expert writing Tips

Best practice

When discussing "severance pay", clarify the eligibility criteria and payment structure upfront to avoid misunderstandings.

Common error

Don't assume "severance pay" disqualifies someone from unemployment benefits. Eligibility depends on local laws and circumstances, so check the specific regulations.

Linguistic Context

The phrase "severance pay" functions primarily as a noun, denoting compensation provided to an employee upon termination. Ludwig's examples show it used in contexts related to job loss and financial agreements.

Expression frequency: Very common

Frequent in

News & Media

37%

Academia

30%

Science

17%

Less common in

Formal & Business

10%

Wiki

3%

Reference

3%

Ludwig's WRAP-UP

The phrase "severance pay" is a common term referring to compensation given to an employee upon termination, as confirmed by Ludwig. It's grammatically correct and widely used across diverse sectors like academia, news, and business. While alternatives like "separation allowance" or "termination benefits" exist, "severance pay" clearly conveys the meaning. Remember to clarify eligibility and understand its tax implications. Additionally, be careful not to confuse it with "unemployment benefits", which have different eligibility requirements.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

separation allowance

Focuses on the allowance aspect rather than the pay itself.

termination benefits

Emphasizes the benefits received upon termination of employment.

redundancy package

Commonly used in British English to describe the benefits offered when a job is made redundant.

outplacement compensation

Highlights the compensation provided to assist with finding new employment.

resignation compensation

Compensation when an employee resigns, typically only offered to upper management.

leaving indemnity

This is a more formal term that suggests a payment to cover any potential losses incurred as a result of leaving employment.

job loss payment

Describes a payment made to someone who has lost their job.

contract payout

Indicates a payment made upon the termination of a contract.

dismissal compensation

Highlights the compensation given upon dismissal.

golden handshake

An informal phrase for a generous severance package, typically for executives.

FAQs

How is "severance pay" calculated?

The calculation of "severance pay" varies, but it often depends on factors like years of service, position, and company policy. Some companies offer a standard formula, such as two weeks' pay per year of service.

What are some alternatives to "severance pay"?

You can use alternatives like "separation allowance", "termination benefits", or "redundancy package" depending on the context.

Is "severance pay" taxable?

Yes, "severance pay" is generally considered taxable income and is subject to federal and state income taxes, as well as employment taxes like Social Security and Medicare.

What's the difference between "severance pay" and "unemployment benefits"?

"Severance pay" is a one-time payment from an employer upon termination, while "unemployment benefits" are government-provided income for those who have lost their job and are actively seeking new employment. Eligibility for unemployment may be affected by the receipt of "severance pay", depending on local regulations.