What is the term for temporary payments made to laid off employees to ease their financial burden?

The correct term for temporary payments made to laid-off employees to ease their financial burden is severance benefit. Severance benefits are designed to provide support to employees who have been terminated from their jobs, often due to layoffs, and help them transition to new employment. These benefits can include financial payments, continuation of health insurance, and other forms of assistance aimed at reducing the immediate financial impact on the affected individuals.

While unemployment compensation typically refers to government-provided financial support for unemployed individuals actively seeking work, it is not issued directly by the employer like severance benefits. Retirement benefits pertain specifically to employees approaching retirement age and are unrelated to layoffs. Financial assistance grants are usually more broadly defined and can apply to various forms of aid, not specifically focused on laid-off employees. Thus, severance benefits aptly describe the temporary financial support provided by employers in response to layoffs.