severance

/ˈsɛvərəns/
noun
  1. The act of ending a connection or relationship, especially employment.
    • She received a generous severance when the factory closed.
    • After the merger, many employees faced severance from the company.
    • The severance of diplomatic ties between the two countries was sudden.
  2. Money and benefits paid to an employee when they leave a job, often as part of a layoff or termination.
    • His severance included six months of salary and continued health insurance.
    • She used her severance to start her own business.
    • The company offered a severance package to all laid-off workers.