Lohn & Leistungen · Glossar
What is Severance Pay?
Schnelldefinition
Compensation paid by an employer to an employee upon termination, often based on years of service.
Vollständige Erklärung
Severance pay is a lump sum or continued paycheck given to an employee when they are involuntarily terminated (laid off, position eliminated). It is NOT legally required in the US for private-sector workers (unlike in many EU countries). Typical severance: 1–2 weeks of pay per year of service. Severance is generally taxable as wages. It may be conditioned on signing a release of claims (waiving the right to sue). Negotiating severance is possible: higher amount, continued benefits, outplacement services, neutral reference. Accepting severance usually means giving up the right to sue the employer. Unfair severance terms can sometimes be negotiated.
Verwandte Rechner
Calculators that use or explain Severance Pay.
Verwandte Begriffe
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Last reviewed: June 15, 2026 • Category: Lohn & Leistungen