Severance

Severance refers to the act of officially ending a relationship or contract, particularly in employment contexts. It often involves the termination of an employee’s position within a company, accompanied by the provision of benefits such as severance pay, which is a financial compensation package provided upon leaving the company. Severance can also imply the cutting off or separation from a particular entity or situation, making it broader than just employment; for example, it can refer to ending ties in personal relationships or business partnerships. In legal terms, severance can involve the disconnection of legal rights or duties. Overall, the term encompasses various forms of separation or discontinuation of association.