Severance

Severance refers to the act of ending a relationship, particularly in the context of employment, where it signifies the termination of an employee’s contract by an employer. This can occur for various reasons, including layoffs, restructuring, or employee performance issues. Often associated with severance pay, it can also denote benefits or compensation that an employer provides to the employee upon termination, which may include a financial payout, continuation of health benefits, or assistance in finding new employment. The concept of severance also extends beyond employment to denote the separation or division of something, such as the severance of ties or connections in relational or contractual contexts.