exit package, severance

[kjc0123]

What is the meaning of "exit package" and "severance" in the following sentence?

Lehner is one of about 80 former Cisco workers who lost their jobs but found new challenges when the company offered them a novel kind of exit package. They're called "Cisco Community Fellows". When the company eliminated 6,000 jobs last April, in lieu of severance it offered employees one-third regular salary, plus benefits and any stock options for one year if they would volunteer their services to a community non-profit organization.

[ian.miller]

they basically can be substituted 1-4-1 for our term redundancy.

[Peter Pedant]

But you may not know what the English mean by redundancy.

An employer employs a worker. The worker has to work for an employer for two years. Then if the employer wishes to fire the employee, he has to pay money to end the contract. (English Law)

In England this is called redundancy pay.In America it is an exit package or severance. Severance does not have this meaning in England.

 

[apricot2]

Severance can still mean the same in this country Peter Pedant.  Many people are dismised with a severance package when they're not redundant. Severance would be part of the exit package which may also include a reference, retention of company car, stock options etc

[ah9815]

Basic answer:

Severence means just money paid by an employer to an employee whose job the employer has had to bring to an end.

Exit Package is decribed in the article - in this case the package was one-third salary + benefits and stock options for one year.