Add Comment Question: What's the difference between termination pay, or pay in lieu of notice, and severance pay? Could I be entitled to both termination pay AND severance pay? Answer: Thank you for contacting our firm. Notice/termination pay is designed to provide someone with income to support them following their termination until they find subsequent employment. Statutory severance pay is designed to compensate someone for their prior years of service. Severance pay is only given to certain employees, depending on the size of the employer and the employees length of service. You may be entitled to both. The above is a very simplified explanation, and your specific circumstances would need to be discussed in more detail to advise what your entitlements might be. If you would like more information, you can contact us to arrange a consultation. Your Comment * Your Email * Your Name * Your City Note, your name, city and email is not displayed on the website. It is used to notify you that we have approved your comment.