Severance Package

Definition

Compensation offered to terminated employees, typically designed to be just generous enough to avoid lawsuits while leaving people financially strained.

Example Usage

The severance package included two weeks of pay plus extended health insurance through the end of the month.

Origin

Business practice from early 20th century

Fun Fact

Severance negotiation is often where employees finally have leverage, making it one of the few times management acts generous.

Source: Employment Law Practice

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