Other forms: severance packages
A severance package is a bundle of pay and benefits that may be offered to an employee when they're laid off from a job through no fault of their own.
Not all companies offer severance packages. In the U.S., they're not required by law unless specified in a contract. A severance package is most likely to be offered during layoffs or corporate restructuring. It's like a financial bridge intended to support a person temporarily, while they try to find a new role. It may offer a lump sum payment equal to a certain number of weeks' wages; extended health insurance coverage; payment for unused time off; and help with finding a new job.