Severance (noun)

1. The act or process of severing or cutting something off.
2. The state of being severed or cut off.
3. Termination of employment or a contract by mutual agreement or by one party.

Origin:

From the latin word "severus" which means "stern" or "harsh".

Examples:

1. The severance of the cable caused the elevator to drop.
2. After much discussion, the company and the employee came to a mutual agreement for a severance package.
3. The severance of the limb was a traumatic experience for him.
4. The company offered the employee a severance package in exchange for signing a non-disclosure agreement.
5. The severance of diplomatic relations between the two countries was a severe blow to the peace process.