What does severance mean?
Severance most commonly means the termination of someone's employment, especially when a job is eliminated through redundancy, restructuring, or a decision not to renew a contract. The word also commonly refers to compensation or benefits provided in such circumstances, as in severance pay or a severance package. Less frequently, severance means the act of cutting something apart or the separation of people or things into distinct groups. In modern usage, the employment sense dominates, carrying a practical and often financial association rather than an inherently negative one. Although a termination may be unwelcome, severance can also suggest a clear, orderly end to a working relationship. The word is formal and widely used in employment law, business, news reporting, and workplace discussions. Understanding it is especially useful when reading contracts, redundancy announcements, or coverage of corporate restructuring.
Dismissal from employment, particularly through redundancy or restructuring; also the compensation or benefits provided to a dismissed employee.
"The factory offered workers enhanced severance rather than compulsory layoffs."
The employment sense is dominant in contemporary usage. As a count noun, it often takes forms such as severance pay, severance package, or severance agreement.
The act of cutting apart, separating, or dividing something.
"The tool made a clean severance of the metal strip."
This general or physical sense is less common today than the employment sense.
Usually uncountable in its standard employment sense; the plural is uncommon but can refer to multiple separate terminations or severance arrangements.
"The redundancies resulted in three severances under mutually agreed terms."
Severance is the word for the moment a job comes to an end—and, in business, the payment that may soften the blow.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does severance come from?
Severance was formed in the early 19th century from the English verb sever and the suffix -ance, meaning the action or result of separating or cutting apart. The verb sever comes through Old French severer from Latin separare, a form of separare meaning “to set apart, distinguish, or divide.” The same Latin root also underlies words such as separate, separation, several, and severe, although the latter originally had a broader sense of division before acquiring its modern meaning of strictness.
How severance is actually used
In its employment sense, severance is usually neutral or formal and commonly occurs with pay, package, agreement, or redundancy. The general sense of dividing or cutting is less frequent in modern English but remains standard.
Easily confused with severance
Severance can mean either an employee's termination or the physical act of cutting or dividing something apart; context usually determines the intended sense.
Severity means the degree of harshness or seriousness of something, whereas severance refers to dismissal or the act of dividing something.