Quick answer: to negotiate a severance package, do not sign on the spot. Ask for the written agreement, use your full review period (at least 21 days, 45 days if you are 40 or older and part of a group layoff), then make one specific counter: more weeks of pay, paid COBRA, accelerated equity or a prorated bonus. Severance is a trade of money for a signed release of claims, so the company has reason to say yes to a reasonable ask. Many employers start from a rule of thumb of one to two weeks of pay per year of service, which is a custom, not a legal requirement.

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 companion book

Laid Off: The 90-Day Recovery Plan

by Jordan Hale

How to negotiate your severance, protect your money and health coverage, and land a better job, laid out as a 90-day plan.

Paperback on Amazon Kindle edition

As an Amazon Associate we earn from qualifying purchases.

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

If you are 40 or older, federal law (the Older Workers Benefit Protection Act) gives you at least 21 days to consider a release, or 45 days when the layoff is part of a group program, plus 7 days after signing to revoke. Workers under 40 are not covered by that rule, so the deadline is whatever the agreement says. Ask for the deadline in writing and use the time instead of signing right away. Source: U.S. Equal Employment Opportunity Commission.

Severance negotiation tips that work

• Ask for the agreement in writing first. You cannot negotiate terms you have not read.
• Make one clear counter, not a list of twenty. Pick the two items that matter most, such as extra weeks of pay and paid COBRA months.
• Anchor to a reason. Years of service, a project you led, or equity that was about to vest are all stronger than "I need more".
• Trade, do not demand. Offer a smooth handoff, a non-disparagement clause or a quick signature in return.
• Get every change in the final document. Verbal promises are not part of the release.

Severance negotiation email template

"Thank you for sending the agreement. I would like to sign, and I have a request on two points. Given my [X years] here and my work on [project], I am asking for [4] additional weeks of severance and [6] months of company-paid COBRA. I can commit to a full handoff by [date]. Can you confirm whether that is possible by [date]?"

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

Severance negotiation FAQ

Is severance pay negotiable?

Almost always, unless the company is paying a fixed formula to everyone in a mass layoff. Even then, non-cash items like COBRA, outplacement, reference language and the timing of your last day are often flexible.

How much severance should I ask for?

Start from what was offered and ask for a specific, defensible increase, such as two to four more weeks of pay, rather than a vague "more". A common starting point for employers is one to two weeks of pay per year of service.

Can I negotiate severance after I have been offered a package?

Yes. The offer is the opening position. Reply before the review deadline and do not sign until the changes are in writing.

Do I need a lawyer to negotiate severance?

Not for a standard package, but an employment attorney is worth a one-time consult if the package is large, includes equity, or you suspect discrimination.