If you are reading this with a separation agreement open in another tab, take a breath first. Losing a job is a body blow, even when you saw it coming, and companies hand you paperwork at the exact moment you are least equipped to read paperwork. That is not an accident, but it also does not have to cost you.
Here is the calm version of what you need to know: severance is usually negotiable, you almost certainly have more time than you feel like you have, and there is a short list of things worth checking before you sign anything. Let's walk through it slowly.
First, the two facts that lower the temperature
You do not have to sign today. The agreement itself states your deadline. Many companies give a review window as standard practice, and in the US, workers over 40 who are asked to release age-discrimination claims are commonly given 21 days to consider and 7 days to revoke after signing. If anyone pressures you to sign on the spot, that pressure is itself a reason to slow down.
Your signature is worth money. A severance agreement is a trade: the company pays you, and you release your right to bring legal claims against them. That release has real value to them. It is why severance exists at all, and it is why "can we adjust this?" is a normal business question, not an act of war.
What is actually negotiable in a severance package?
More than most people assume. Companies have policies, but policies have exceptions, and the person handling your exit often has discretion. Here is the checklist, roughly in order of impact for most people.
1. The cash: weeks of pay
The headline number is usually expressed as weeks of pay per year of service. Things that support asking for more:
- Long tenure, strong reviews, or a role that was eliminated rather than performance-related
- Timing that hurts you, like being cut weeks before a bonus payout or vesting date
- What colleagues at your level received in the same or previous rounds, if you know
A simple ask works: "Given my six years here and the timing relative to my bonus date, I'd like to request twelve weeks instead of eight." No threats needed.
2. Healthcare continuation
In the US, COBRA lets you keep your employer plan, but you pay the full premium, which is often a shock. Ask whether the company will cover or subsidize your premiums for some months. This is a common concession because it costs the company less than it is worth to you, especially if you have a family on the plan.
3. Equity, bonuses, and anything already earned
Read these sections twice:
- Unvested equity: does anything accelerate, or does it all vanish? If a vesting cliff or a meaningful tranche is weeks away, ask whether your termination date can be moved past it, or whether the company will accelerate that portion.
- Earned bonus: if you worked most of a bonus period, ask for a prorated payout.
- Unused PTO: some states require paying it out. Confirm it appears in the agreement or is being paid separately.
- Final expenses and commissions: get any owed amounts listed explicitly.
4. The story: references and the departure narrative
Ask what the company will say when someone calls to verify your employment, and ask for it in writing. Many companies confirm only dates and title, which is fine. What you want to avoid is ambiguity. You can also request:
- A neutral or positive reference letter, or an agreed named referee
- Agreement on the wording, such as "position eliminated in a restructuring"
- Non-disparagement that runs both ways, so the company's people are also bound
This matters later when you explain why you left your last job in interviews. The cleaner the agreed story, the easier that conversation gets.
5. The handcuffs: non-compete and non-solicit scope
This is the section that can quietly cost you the most, because it limits where you can work next. Check:
- Scope: what roles, companies, or industries are off limits?
- Geography and duration: how wide, and for how long?
- Whether it is new: if the severance agreement adds a non-compete you never had, that is a significant new ask from them, and it justifies significant new money from you, or removal.
Narrowing a non-compete is a completely normal negotiation point. "I can agree not to solicit clients I personally managed, but I need the general industry restriction removed so I can earn a living" is a reasonable position.
6. The practical extras
Small asks that often get a quick yes:
- Keeping your laptop or phone number
- Outplacement or career-transition support, or its cash equivalent
- An agreed internal announcement wording
- A later termination date (even two weeks can matter for healthcare, vesting, or a loan application)
When should you pay a lawyer?
A one-hour review with an employment lawyer typically costs a few hundred dollars. Pay it without hesitation if any of these are true:
- The agreement contains a non-compete, or expands one
- Meaningful equity is at stake
- You believe the termination may have involved discrimination, retaliation, or a complaint you raised
- You are over 40 and the layoff seems to have skewed older
- The severance amount is large enough that a small percentage improvement pays the fee many times over
A lawyer is not a declaration of war. Most reviews end with "this is standard, here are two things to push on," and you negotiate those points yourself, politely.
How to actually make the ask
Keep it short, warm, and specific. Email works fine:
"Thank you for walking me through the agreement. Before I sign, I'd like to request two adjustments: twelve weeks of severance instead of eight, given my tenure, and company-paid health premiums through the end of the year. Everything else looks workable. Happy to discuss."
Two or three asks, ranked by what matters most to you. You will not get everything. You will very often get something, and something is real money on a hard day.
What to check one last time before signing
- The money: amount, payment schedule, and tax withholding method
- The deadline and any revocation period
- Healthcare: exact end date of coverage and what was agreed about premiums
- Equity: what vests, what accelerates, what dies, and your exercise window for options
- The release: what claims you are giving up (this is the part a lawyer reads fastest and best)
- Restrictions: non-compete, non-solicit, non-disparagement, confidentiality
- The reference: what they will say, in writing
Print it, check each line, sleep on it once. Then sign, if it is right, and close the tab.
When you are ready to look forward (not today, and that is fine)
There is no prize for updating your resume the same week you were laid off. But when the fog lifts, a good first step is small and factual: get your final title, dates, and last accomplishments written down while they are fresh, and build a comeback plan after the layoff at your own pace.
When you want a gentle, zero-pressure way to start, run the free Bounce scan at careerbounce.io. It shows you exactly what hiring software will read from your resume, which sections parse cleanly and which get scrambled. It runs entirely on your device and your resume file never leaves your computer. The score and findings show on screen with no name or email, and they are sent to us only if you ask for the emailed report, which needs just an email address. No promises about what comes next, because nobody honest can make those. Just a clear, private look at where you stand, whenever you decide you are ready.