Dismissal Pay Definition

Dismissal pay includes payments to terminated employees. It is also known as severance pay, termination pay, or dismissal pay in lieu of notice.

Dismissal Pay Extended Definition
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.