48 CFR · Federal Acquisition Regulation and Defense supplement

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The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

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12 sections with “severance pay”

  • FAR 52.237-8 Restriction on Severance Payments to Foreign Nationals.
    As prescribed in 37.113-2(a), use the following provision: Restriction on Severance Payments to Foreign Nationals (AUG 2003) (a) The Federal Acquisition Regulation (FAR), at 31.205-6(g)(6), limits the cost allowability of severance paymen…
  • FAR 52.237-9 Waiver of Limitation on Severance Payments to Foreign Nationals.
    As prescribed in 37.113-2(b), use the following clause: Waiver of Limitation on Severance Payments to Foreign Nationals (DEC 2022) (a) Pursuant to 10 U.S.C. 3744(b) or 41 U.S.C. 4304(b)(1), as applicable, the cost allowability limitations…
  • FAR 37.113 Severance payments to foreign nationals.
  • FAR 31.205-6 Compensation for personal services.
    …sts are subject to the requirements of paragraphs (f)(1) and (k) of this subsection. (g) Severance pay. (1) Severance pay is a payment in addition to regular salaries and wages by contractors to workers whose employment is being involuntar…
  • FAR 31.603 Requirements.
    …nown as a “golden parachute payment”) which is— (i) In an amount in excess of the normal severance pay paid by the contractor to an employee upon termination of employment; and (ii) Is paid to the employee contingent upon, and following, …
  • FAR 37.113-1 Waiver of cost allowability limitations.
    (a) The head of the agency may waive the 31.205-6(g)(6) cost allowability limitations on severance payments to foreign nationals for contracts that— (1) Provide significant support services for (i) members of the armed forces stationed or …
  • FAR 37.113-2 Solicitation provision and contract clause.
    (a) Use the provision at 52.237-8, Restriction on Severance Payments to Foreign Nationals, in all solicitations that meet the criteria in 37.113-1(a), except for those excluded by 37.113-1(c). (b) When the head of an agency has granted a w…
  • FAR 31.109 Advance agreements.
    …related to maximum per diem rates; (9) Costs of idle facilities and idle capacity; (10) Severance pay to employees on support service contracts; (11) Plant reconversion; (12) Professional services (e.g., legal, accounting, and engineeri…
  • DFARS 231.205-6 Compensation for personal services.
    …unded by fiscal year 1996 or subsequent appropriations. This limitation does not apply to severance payments or early retirement incentive payments. (See 231.205-70(b) for the definitions of “business combination” and “restructuring costs.”…
  • DFARS 231.205-70 External restructuring costs.
    …ring activities. Restructuring costs that may be allowed include, but are not limited to, severance pay for employees, early retirement incentive payments for employees, employee retraining costs, relocation expense for retained employees, …
  • DFARS 252.249-7000 Special termination costs.
    …lowing categories as defined in part 31 of the Federal Acquisition Regulation (FAR)— (1) Severance pay, as provided in FAR 31.205-6(g); (2) Reasonable costs continuing after termination, as provided in FAR 31.205-42(b); (3) Settlement of…
  • FAR 52.204-10 Reporting Executive Compensation and First-Tier Subcontract Awards.
    …ed. (6) Other compensation, if the aggregate value of all such other compensation (e.g., severance, termination payments, value of life insurance paid on behalf of the employee, perquisites or property) for the executive exceeds $10,000. …

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.