At first my former employer denied my claim saying that I was receiving "wages in lieu of notice" it was not long before the Texas Workforce Commission (TWC) contested the denial and concluded that I was not receiving wages in lieu of notice. Here are the definitions of "severance" and "wages in lieu of notice" quoted from TWC.
Severance - Severance pay that is promised in a written policy or other form of agreement is an enforceable part of the wage agreement under the Texas Payday Law. Under § 821.25(b)
Wages In Lieu of Notice - It is not the same as wages in lieu of notice, which is a post-termination payment that the employer has never previously obligated itself to give. Just like the name implies, it is a payment that is given in lieu of advance notice of termination, and it is not based upon any particular formula, but rather upon whatever arbitrary amount the employer thinks is appropriate to give. It is usually given to "make up for" the lack of advance notice and can be given in a lump sum or in installments. A payment of wages in lieu of notice is not enforceable under the Texas Payday Law, since there was no prior obligation to give it.
Here are some other good links related to unemployment: