When an employee leaves a job permanently, the money as well as any benefits, that they take with them is called a severance package.
Severance packages often include additional items such as retirement plans, stocks, insurance including dental, life, and medical, and the payment value of unused vacations as well as family and medical leaves.
Not all employees receive severance packages.
Employers offer severance packages to employees who meet predetermined standards.
Severance packages are most often offered for employees who have been with a company for a certain length of time, have reached the age of retirement, or are laid off.
They are occasionally offered to those who have been terminated from their jobs, but this is not always the case.
New employee manuals sometimes state the policy for severance packages.
If you receive a severance package when leaving your company, you will be held to a measure of accountability as to what you may and may not do. If you accept a severance package, you are also signing away your right to later sue the company for any breach of contracts or wrongful termination.