When you're laid off, your first instinct might be to sign whatever paperwork is put in front of you. But here's what most people don't know: severance packages are almost always negotiable.

In this comprehensive guide, we'll walk you through exactly how to negotiate a better severance package, including word-for-word scripts you can use.

Why Severance is Negotiable

Companies offer severance for several reasons:

• To avoid potential lawsuits
• To maintain their reputation
• To ensure a smooth transition
• To protect confidential information

This gives you leverage. The company wants something from you (a clean break, a signed release), and you can ask for more in return.

What's Negotiable in a Severance Package

Beyond the base severance pay, consider negotiating these elements:

Extended Healthcare Coverage

Ask the company to pay for COBRA premiums for several months, or negotiate a lump sum to cover healthcare costs. This can save you $1,500-$2,500 per month.

Equity Acceleration

If you have unvested stock options or RSUs, ask for accelerated vesting. Even partial acceleration can be worth tens of thousands of dollars.

Bonus Payments

If your layoff happens before bonus season, negotiate to receive a prorated bonus based on your tenure and performance.

Outplacement Services

Professional career coaching and job placement services can be worth $5,000-$15,000. Ask for this to be included.

Reference Agreement

Get a written agreement about what the company will say when contacted for references. This is often overlooked but incredibly valuable.

The Negotiation Script

Here's a template you can adapt:

"Thank you for sharing this information. I appreciate the company providing a severance package. Before I can sign, I'd like to discuss a few items that would help me with my transition. Specifically, I'm looking at [X weeks additional severance / extended healthcare / outplacement services]. Given my [tenure/contributions/circumstances], I believe this is reasonable. What flexibility do we have here?"

Timing is Everything

You typically have 21 days to review a severance agreement (45 days if you're over 40). Use this time. Don't feel pressured to sign immediately.

When to Get a Lawyer

Consider hiring an employment attorney if:

• The package is worth $50,000 or more
• You believe you were discriminated against
• There are complex equity or deferred compensation issues
• The release language seems overly broad

Common Mistakes to Avoid

• Signing too quickly: Take your time to review and negotiate
• Getting emotional: Stay professional and focused on facts
• Not asking at all: The worst they can say is no
• Accepting the first offer: Always counter at least once