How to Say “Severance” in Spanish

indemnización por despido
/indemniθaθjon poɾ despido/from spelling rules
The English phrase severance is translated into Spanish as indemnización por despido.
This phrase refers to the money paid by an employer to an employee when their employment is ended. While indemnización can refer to many types of compensation, adding por despido specifies that the payment is specifically due to being fired or laid off. Another term used in Spanish-speaking countries is finiquito, which refers to the final settlement an employer pays to an employee upon termination.

What does it mean word for word?

The phrase literally translates to 'compensation for dismissal', where indemnización means compensation/indemnity and despido means dismissal/firing.

Is it said differently in some regions?

In some regions like Mexico, liquidación por despido may be used instead of indemnización por despido to convey the same meaning.

How does it change in a sentence?

The phrase is a noun phrase that is typically used with the preposition por to indicate the reason for the payment.

How do you pronounce it?

/indemniθaθjon poɾ despido/

Did you know?

  • The noun despido comes from the verb despedir, which is used both for firing an employee and for saying 'goodbye' to a friend.
  • In many Spanish-speaking countries, the finiquito is a physical document that the employee must sign to acknowledge they have received all owed payments.
  • The word indemnización shares a common ancestor with the English word 'indemnity', as both derive from the Latin 'indemnis', meaning 'unhurt' or 'free from loss'.

Examples in context

  • Pedro recibió una indemnización por despido tras ser despedido de su trabajo.
    Pedro received a severance payment after being fired from his job.
  • Laura firmó el finiquito y recibió su indemnización tras ser despedida de la empresa.
    Laura signed the severance agreement and received her compensation after being fired from the company.
  • Juan recibió su liquidación después de que la empresa cerrara.
    Juan received his severance after the company closed down.
  • Roberto recibió su liquidación por despido tras una reestructuración de la empresa.
    Roberto received his severance payment after a company restructuring.
  • Recibió una buena indemnización por despido.
    He received a good severance package.
  • La empresa me pagó la indemnización por despido.
    The company paid me my severance.
  • ¿De cuánto es la indemnización por despido?
    How much is the severance pay?
  • Él está negociando su indemnización por despido.
    He is negotiating his severance pay.

Example conversation

Lucía and Mateo are talking about his recent job loss.

  1. Lucía

    Siento mucho lo de tu trabajo, Mateo.
    I am very sorry about your job, Mateo.
  2. Mateo

    Gracias, Lucía, pero ya recibí la indemnización por despido.
    Thanks, Lucía, but I already received the severance pay.
  3. Lucía

    Eso es bueno para tener un respiro.
    That is good to have a breather.
  4. Mateo

    Sí, ahora puedo buscar algo nuevo con calma.
    Yes, now I can look for something new calmly.

Sources

  • IPA marked “from spelling rules” is derived from standard Spanish spelling, where Wiktionary gives none.
  • Word origins: Wiktionary entries despido, indemnización, por, CC BY-SA 4.0.
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Rosie Taylor
Rosie TaylorHelp make this guide better. Spot a mistake, know another way to say it, or have an example from real life? Share it below.
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