Legal Definitions - dismissal compensation

Dismissal compensation is a type of payment given to an employee who has been terminated from their job. It is also known as severance pay.

For example, if a company lays off an employee due to downsizing, they may offer them a severance package that includes dismissal compensation. This payment is meant to help the employee during their transition period while they search for a new job.

Another example is if an employee is terminated due to misconduct, the company may still offer them a severance package that includes dismissal compensation as a way to avoid potential legal issues.

These examples illustrate how dismissal compensation is a form of financial support given to employees who have lost their job. It is meant to help them during their transition period and provide some financial stability until they find a new job.