Severance pay is defined as:

Severance pay is best defined as a discretionary payment made to an employee when their employment is terminated, often tied to a release of claims against the employer, in this case, the County. This kind of payment serves multiple purposes. It can act as a means for the employer to ensure a smooth transition by offering financial support to an employee who is leaving the organization, which may also encourage them to release any potential claims or lawsuits against the employer related to their termination.

In many situations, severance pay is not required by law; rather, it is negotiated terms of employment that are often outlined in company policy or individual employment contracts. This distinguishes it from mandates requiring payment under state laws, which typically apply to specific circumstances rather than a general practice.

Understanding severance pay in this context helps clarify that it is primarily about facilitating an amicable end to the employment relationship while limiting the employer's future liabilities. Other options, while they touch on aspects of severance, do not encapsulate the primary legal and practical implications of severance pay as it relates to the release of claims.