Definition of Severance package:
A severance package is a bundle of pay and benefits offered to an employee upon being laid off from a company. The receipt of a severance package is contingent upon signing a severance agreement. The amount of money received is usually based on the length of employment prior to termination and may include payment for unused vacation and sick days, and unreimbursed business expenses.
Other continued benefits that may be offered or negotiated include life insurance, disability insurance and the use of company property, such as a laptop, cell phone, personal digital assistant (PDA) or vehicle. Companies may also offer outplacement assistance, to help the former employee find a new job.
Compensation package offered to a terminated employees from his/her company. This package may include severance pay, stocks, retirement packages, and other perks. The compensation included in the severance package typically covers a specified time-period unless other details were arranged before termination. Executive severance packages may be referred to as golden parachutes.
Meaning of Severance package & Severance package Definition