Is separation pay the same as severance?

Separation pay and severance are related but not identical concepts. Separation pay typically refers to compensation provided to employees when they leave a company, often due to layoffs or mutual agreement, and may include various forms of financial support. Severance, on the other hand, specifically refers to a payment made to an employee upon termination, usually based on their length of service and company policies. While both are designed to assist employees during transitions, the terms and conditions may vary by employer and jurisdiction.