HR Glossary

What is Severance Pay?

Compensation provided to employees upon involuntary termination, typically based on length of service, often offered in exchange for a release of legal claims against the employer.

Why it matters in hiring

Severance Pay comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with S

• Self-Assessment
• Self-Paced Learning
• Separation Agreement
• Service Certificate (Singapore)
• Shadow Payroll
• Sham Contracting (Australia)
• SHG Fund (Singapore)
• Shift Differential

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.