From Longman Dictionary of Contemporary Englishseverancesev‧er‧ance /ˈsevərəns/ noun [uncountable] formal 1 when you end your relationship or connection with another person, organization, country etc, especially because of a disagreementseverance of the severance of diplomatic ties between the two countries2 → severance pay/package
Examples from the Corpus
severance• She said the brothers would not receive additional severance for resigning from the board.• Approximately 1,700 employees who work at seven Emporiums that are being liquidated are eligible for severance.• In addition, anyone forced to move more than 35 miles to another job location could quit and get severance.• Kramer reportedly got severance worth tens of millions.• One of them reportedly calls for two months severance plus a month for every year worked.• From that moment on, my severance with the old modes of reality was complete.• He gains another month of severance each subsequent year.• the severance of all economic ties between the two nations• The company has a voluntary severance and early retirement program.• It is hoped that the run down can be achieved by voluntary severance and redeployment.• Sources said that they have been given six weeks to finish their assignments and another four weeks' severance pay.From Longman Business Dictionaryseverancesev‧er‧ance /ˈsevərəns/ noun [uncountable] LAW the act of officially ending an agreement or contract, especially between an employer and an employeeBefore signing, it is important to know whether severance is available.The company hasn’t yet negotiated severance payments for the 70 employees affected by the closure. 