Severance pay and separation pay: Similar functions but different creatures, and misapplied more often than you think. Terminations and layoffs are never easy, so don’t make them any tougher by not being clear about what you are offering. In a recent webinar, “Breaking Up Is Hard To Do: Severance vs. Separation,” ES&A President Anna Elento-Sneed discussed the two issues side by side, as well as: