"Severance pay" is compensation that is paid to a qualified employee who has their employment "severed." It compensates an employee for losses (such as loss of seniority) that occur when a long-term employee loses their job.
Severance pay is not the same as termination pay, which is given in place of the required notice of termination of employment.
Original Article Source Credits: Ontario, https://www.ontario.ca/
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Original Article Posted on: NA
Link to Original Article: https://www.ontario.ca/document/your-guide-employment-standards-act-0/severance-pay