Severance Pay
Also called: redundancy pay, severance package, termination pay
Severance is compensation paid on termination, commonly framed as a number of weeks per year of service. It's taxable as ordinary income and typically withheld at supplemental rates. The negotiable parts are usually not the headline amount: continued health coverage, accelerated vesting of equity, the reference and the non-compete are frequently more valuable and more movable than the extra week of pay.