severance
n. uncountablen. the act of ending a connection or relationship, especially between a worker and a company. It often refers to the money an employer pays you when they end your contract.
n. the action of ending a connection or relationship; specifically, the termination of an employment contract by the employer. Often refers to the financial compensation provided upon such termination.
The company offered him a generous severance package.
After ten years of service, she received six months of pay as severance when the factory closed.
The sudden severance of diplomatic ties between the two nations led to an immediate suspension of all cross-border trade and travel agreements.
Often used as a modifier in the compound noun 'severance pay' or 'severance package'.