Severance Pay
Severance pay is the money that you receive after termination. It is pay after severance from the company, hence “severance” pay. Severance pay depends on the service rendered by the employee, and according to a formula followed by the company, as well as whether if the employee is eligible to receive such pay. It is not the duty of the employer to pay for the severance, but usually nowadays, contracts have something to say about severance pay, out of initiative by the company. The amount you get is usually just announced on the day of your termination, so you really have no idea unless you ask beforehand.
