In the unfortunate case of a layoff, individuals can use any help available. Employee severance is payment to an employee as they are released from employment with the company. The company may provide the payment in many different forms such as, continued income, insurance, a bonus lump sum, electronics or stocks. Agreements such as aid in finding new employment can also be included. The Fair Labor Standards act requires a few things post-employment, but severance is not one. Payment of all earned wages is required. In addition, payment for vacation days are generally paid, but not for sick days.