# severance

/ˈsɛˌvɝəns/ (US) · /sˈɛvəɹəns/ (UK) · CEFR C1 · Noun

Source: https://englishreference.com/word/severance
Updated: 2026-08-15

## Definition

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.

For teachers: 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.

## Examples

- 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.

## Usage notes

- Often used as a modifier in the compound noun 'severance pay' or 'severance package'.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.