How to negotiate a severance package

If you've just been told your role is being eliminated, the instinct is to sign whatever's put in front of you and move on. Don't. Severance packages are almost always negotiable, and most companies build in room precisely because they expect some employees to push back — the first offer is rarely the final one.

Here's what's actually on the table, even when the letter reads like it isn't.

Severance pay itself

The number of weeks offered is often calculated by a formula (tenure × some multiplier), but formulas have discretion built in, especially for longer-tenured or senior employees. Asking for more weeks is the single most common and most successful ask.

“"I appreciate you working through this with me. Before I sign, I'd like to revisit the severance calculation — given my tenure and role, I was expecting something closer to [X weeks]. Is there room to discuss that?"”

Benefits continuation

In many countries, health coverage continuation (COBRA in the US, or the equivalent) can be extended or subsidised further as part of a negotiated package. Ask specifically whether the company will cover the premium for an additional period, not just whether coverage is available.

Unused PTO and bonus payout

Confirm whether accrued but unused vacation is being paid out, and whether you're owed any pro-rated bonus for the period you worked this year. These are sometimes left out of the first draft simply because nobody asked.

Outplacement support

Career coaching, resume support, or a dedicated recruiter service is a low-cost add for the company and a real asset for you if you're job searching. It's worth asking for even if it wasn't offered.

The reference

Ask directly what the company will say if a future employer calls for a reference — and get it in writing if possible. A neutral "dates of employment only" policy is standard, but if you had a genuinely good relationship with your manager, ask whether they'd be willing to give a positive reference separately from HR's official line.

The release and non-compete terms

Most severance agreements include a release of claims — read it carefully, and don't rush signing. If there's a non-compete or non-solicitation clause, this is often your best and only moment to negotiate its scope or duration down, since the company wants your signature.

If you're heading into a job search right after this, our piece on negotiating salary after a career break covers how to handle the gap question when you're back out interviewing. Our FAQ answers the practical questions people ask before their first negotiation.