Origin of severanceMiddle English from Anglo-French from Old French sevrance
- a. The act or process of severing.b. The condition of being severed.
- Separation; partition.
- Severance pay.
severance - Investment & Finance Definition
A payment made by a corporation to an employee who has been laid off. A typical severance package is 2 weeks of pay for each year a person has worked at the company, although severance packages vary substantially from company to company. Severance payments usually are voluntary payments and are not required by law. Some exceptions occur if a union contract guarantees a certain amount of severance or if other requirements are spelled out in a contract. Severance payments may be made in a lump sum or may be paid out in the regular payroll process.
severance - Legal Definition
- A severing or cutting off; in criminal law the process of bringing a particular charge out of many so that only one issue, or a few closely related ones, is before the jury at a time, while reserving the right to bring other charges later; the separating of the claims of two or more parties for any of a number of reasons; the ending of a joint tenancy.
- The removal of something attached to real property, such as crops or minerals, so that it becomes personal property instead of a part of the land.