Compensation that is paid to a worker who has been fired, laid off, or otherwise involuntarily released from his or her job.
Usually, a severance check includes unused vacation time or any other debts owed to the worker.
If the worker has been laid off, often the company will offer the worker additional money. In return for the extra cash, the worker must promise not to sue the company. Often, this type of legitimate bribery is pro-rated, depending on how long the worker had been hired by the company.