Yes. You are right.
severance = the termination of someone's employment (leaving them free to depart)
severance (pay) = a payment to compensate an employee when they leave employment before retirement
(выходное пособие, единовременное денежное пособие при увольнении из армии)
We were offered 13 weeks' severance (pay).
She received severance pay when her job was eliminated.
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