Question by Universal Citizen: Terms: “severance”, “laying off”, “redundancy” the same thing or different?
Is it a matter of dialect ie where different regions use different terms to mean the same thing or do these terms mean the same thing?
If they mean something different, in which cases do employers pay out the employee?
Are there particular negative or positive connotations attached to any of the terms?
Best answer:
Answer by tangek
These terms have slightly different meanings.
“Severance” simply means that employment is ended. There is no specific meaning as how why employment is ended. Sometimes the word will also be used to refer to a package or benefits upon the end of employment, such as salary continuance, a bonus, or health benefits.
“Laying off” means that the company is downsizing and has decided to let go of part of its staff.
“Redundancy” means that your job is no longer necessary, as someone else is or can do it. This is most often seen when two companies merge, and the combined company does not need as many people in each department.
I’ve always believed that being “fired” or “terminated with cause” is the worst way to lose you job, as it has quite a negative connotation.
Laying off or redundancy seems no worse than a bit of bad luck.
You might get a package (pay / benefits) in any of the above scenarios, except being fired for cause.
Hope that helps.
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