No state or federal laws direct companies to provide any sort of severance after an employee is released. A severance is any payment over the earned amount to an employee after their termination. That earned amount is the only payment required to be paid by law. It will usually include payment for vacation days, but not sick days. Severance standards are set by each individual organization. They may choose not to provide them at all. A severance can include anything from insurance to a bonus lump sum to company stocks. The package may also include agreements, such as help from the company in providing new job opportunities or training.