A severance package is pay and benefits an employee receives when he or she leaves employment at a company. In addition to the employee's remaining regular pay, it may include some of the following:

• An additional payment based on months of service
• Payment for unused vacation time or sick leave.
• A payment in lieu of a required notice period.
• Medical, dental or life insurance
• Retirement (e.g., 401(k)) benefits
• Stock options
• Assistance in searching for new work, such as access to employment services or help in producing a résumé.