Severance Pay
Payment that may be due when an employee is dismissed for operational requirements.
Definition
Severance pay is usually checked together with the retrenchment reason, consultation record, length of service, notice pay, leave pay, benefits, tax treatment, and any settlement wording. It should not be treated as the only retrenchment issue.
Key takeaways
Payment that may be due when an employee is dismissed for operational requirements.
Labour Law
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Related legal problems
This glossary provides general information only and does not constitute legal advice.
Common situations
Retrenchment
Severance dispute
Final pay dispute
Related resources
Resources and guides
Retrenchment Checklist
Checklist for gathering consultation, selection criteria, severance, and retrenchment process documents.
Labour LawClient Document PackRetrenchment Consultation Document Pack
Retrenchment Consultation Document Pack: prepare Section 189 notice, Operational-requirements reasons, Organogram and identify missing records before legal advice.
Labour LawPreparation PackEmployment Dispute Pack
Employment Dispute Pack for organising facts, dates, documents, and next steps before seeking labour law help.
Labour LawFAQs
Severance Pay FAQs
What does Severance Pay mean?
Payment that may be due when an employee is dismissed for operational requirements.
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