severance payment / settlement
Loading your saved state.
severance payment
A one-time payment of money that an employer pays an employee when the employment relationship ends, especially as compensation for the loss of the job.
Nach 20 Jahren im Betrieb erhielt sie bei ihrer Kündigung eine hohe Abfindung.
After 20 years with the company, she received a large severance payment when she was dismissed.
settlement
Financial compensation paid to finally settle a legal claim, such as a claim to maintenance or a share of an inheritance, or to compensate for giving up a right.
Die Versicherung bot dem Unfallopfer eine Abfindung an, um einen langwierigen Gerichtsprozess zu vermeiden.
The insurance company offered the accident victim a settlement in order to avoid a lengthy court case.
The noun 'Abfindung' is derived from the verb 'abfinden.' 'Jemanden abfinden' means to give someone something, usually money, so that they accept a loss or an unpleasant situation.
Er wurde mit einer großzügigen Summe abgefunden.
He was compensated with a generous sum.
The word 'Abfindung' belongs to the technical language of labor and civil law. It is used in formal contexts when dealing with contracts, dismissals, or legal settlements.
Im Arbeitsvertrag sind die Bedingungen für eine mögliche Abfindung geregelt.
The employment contract regulates the conditions for a possible severance payment.
The context reveals the exact meaning. In connection with 'Arbeitgeber' (employer) or 'Kündigung' (dismissal/termination), it refers to compensation paid for job loss. If it is about 'Versicherung' (insurance) or 'Unfall' (accident), it means general financial compensation.
Wegen der Werksschließung erhalten alle Mitarbeiter eine Abfindung.
Because of the plant closure, all employees will receive a severance payment.
In connection with a severance payment from an employer, the verbs 'erhalten' (to receive), 'bekommen' (to get), 'aushandeln' (to negotiate), or 'zahlen' (to pay) are often used.
Nach langen Verhandlungen hat er eine faire Abfindung ausgehandelt.
After long negotiations, he negotiated a fair severance payment.
compensation
Entschädigung generally refers to financial or material compensation for a disadvantage suffered. Abfindung is a specific one-time payment made when an employment relationship ends, especially to compensate for the loss of a job. Use Entschädigung as the general term, but for this kind of end of employment, use Abfindung.
Nach der Beendigung seines Arbeitsverhältnisses erhielt er eine Abfindung.
After his employment ended, he received a severance payment.
Für den beschädigten Koffer verlangte sie eine Entschädigung.
She demanded compensation for the damaged suitcase.
