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.
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 / equalizer
'der Ausgleich' and 'die Abfindung' can both refer to a payment that compensates for a loss or for giving something up. 'Ausgleich' is the more general word and can be used in many situations, even without a job or contract. 'Abfindung' is much more specific: it usually refers to a one-time payment of money, for example at the end of an employment relationship or when someone gives up a claim. Learners may confuse the words because an 'Abfindung' can be a kind of 'Ausgleich'. But not every 'Ausgleich' is an 'Abfindung'.
Nach der Kündigung erhält meine Freundin eine Abfindung von ihrem Arbeitgeber.
After being dismissed, my friend receives a severance payment from her employer.
Der Vermieter zahlt einen kleinen Ausgleich, weil die Heizung drei Tage lang nicht funktioniert hat.
The landlord is paying a small amount of compensation because the heating did not work for three days.