What is the difference from termination pay and severance pay?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What is the difference from termination pay and severance pay?
Asked on November 9, 2011 under Employment Labor Law, Connecticut
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
There is not necessarily any difference--both terms are often used interchangeably. The key issue is how the employer in question is using them, and the best way to know that is to ask.
To the extent there is any difference in usage, "severance pay" is used almost exclusively for a payment made when someone's employment terminates which was either required by an employment contract, the consideration for signing a separation and release agreement, and/or pay the employer voluntarily chose to provide (e.g. to cushion the blow). It is not money for actual work done--it is not salary or wages.
"Termination pay" could be the above, but it could also simply be the last payment(s) made to the employee, for the last work he or she did.
But again, there really is not firm distinction; what matters is how the terms are used in any particular case.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.