Is severance essentially the expected value of firing an employee? The way I've seen it used is what you pay an employee in exchange for them not suing you for

Is severance essentially the expected value of firing an employee? The way I've seen it used is what you pay an employee in exchange for them not suing you for wrongful dismissal. Once it hits a certain threshold an employee will take the money and shut up. If it's not enough or they believe they can get more they will retain a lawyer and sue.