severance

/ˈsevərəns/ noun [U] HR, LAW

Definition

› the official ending of an agreement, especially between an employer and employee: He is entitled to $40,000 in severance pay. The union negotiated severance agreements for all staff made redundant. severance benefits/compensation/payments

› payment received by an employee when their employment is ended by the management: Workers with less than 6 months employment did not receive any severance.

(Definition of severance noun from the Cambridge Business English Dictionary © Cambridge University Press)