Dismissal Pay Definition
Payments to employees whose employment has been terminated. Also known as severance pay, termination pay, or dismissal pay in lieu of notice.
Dismissal pay is often up to the discretion of the employer, but is often equal to one week’s pay for each year of service. Dismissal pay can be part with a larger severance package including continuation of insurance benefits for a set period of time.
What is Severance Pay?