Retiring allowance
Amount paid to an employee on:
- loss of employment; or
- retirement (in this case, the amount must be paid on or after the employee's retirement, in recognition of the employee's long service).
Note
A retiring allowance (also called “severance pay”) can be an amount refunded for sick leave accumulated but not used before the employee's resignation or retirement, an amount paid for damages plus interest, or an indemnity in lieu of notice.