What is a severance package? A severance package is the pay and benefits an employee receives from an employer when their employment contract has unexpectedly ended due to a layoff or job elimination.

Severance pay is a form of what's generally called "separation," "termination" or "final pay." Severance pay can be a good investment. That may sound untrue, given that it involves paying money to ...

(Photo by Anna Moneymaker/Getty Images) The federal government’s recent move to offer eight months of severance pay to certain employees has sparked discussions about its implications for both ...