What You Can Negotiate in a Severance Offer

Severance pay is not fixed by law in most cases, which means there is room to negotiate. Your employer has made an opening offer, but that offer is often a starting point, not a final number. The parts you can realistically negotiate include the amount of severance itself, how long your health insurance continues, what the company will say about you to future employers, whether you keep certain benefits, and the timeline for receiving payments.

Not every employer will budge on every item. Some have strict policies they explore to all departing employees at your level. Others have more flexibility, especially if you held a senior role, worked there for many years, or if the departure was initiated by the company rather than by you. The key is understanding what matters most to you and what your employer might actually change.

Before you push back on anything, read the severance agreement carefully. Look for what is already in your favor — sometimes employers include things you did not expect. Then identify the two or three items that would make the biggest difference to your situation, because those are the ones worth spending negotiating energy on.

Key Takeaways

  • Severance offers are often negotiable, especially the dollar amount, health insurance duration, and what the company will tell future employers about your departure.
  • You have the most leverage when ready after receiving the offer, before you sign anything or accept the terms.
  • Asking for changes in writing keeps the conversation clear and gives your employer time to consult with their legal or HR team.
  • If your employer refuses to negotiate, you can still ask for time to review the agreement with an employment attorney before signing.
  • Once you sign a severance agreement, you typically cannot go back and ask for more, so take the negotiation seriously the first time.

Timing: When to Negotiate

The moment to negotiate is right after you receive the offer, before you sign anything. Once your signature is on the agreement, you have almost no leverage left. Most severance agreements include language that says you cannot change the terms after you have accepted them.

Do not feel pressured to decide when ready. Employers often give you a window — sometimes a few days, sometimes two weeks — to review the offer. Use that entire window. Tell your employer you want to review it carefully and will get back to them by a specific date. This is normal and expected.

If your employer says the offer expires in 24 hours or that you must decide today, that is a pressure tactic. You can still ask for more time. Reasonable employers will grant it. If they will not, that tells you something about how they negotiate, and you may want to consult an employment attorney before signing.

How to Make Your First Counteroffer

Put your counteroffer in writing. Email is fine. This keeps the conversation clear, gives your employer time to think, and creates a record of what you asked for. Do not try to negotiate this in a phone call or in person — you will be at a disadvantage, and there will be no record of what was said.

Start by thanking them for the offer and saying you are reviewing it carefully. Then state what you are asking for. Be specific: "I am requesting an additional four weeks of severance pay" is clearer than "I think the amount is low." If you are asking for multiple changes, list them separately so your employer can address each one.

Keep your tone professional and unemotional. Do not say the offer is insulting or unfair. Do not threaten to sue or to go to a lawyer (unless you actually are going to, in which case you should do that instead of negotiating). straightforward state what you need and why it makes sense: "I have been with the company for twelve years and would like two weeks of severance for each year of service" or "I need health insurance to continue through the end of the year because my family's coverage depends on it."

What Employers Will Usually Negotiate On

Severance amount: This is the most common negotiation point. If you were laid off or if the company initiated the separation, you have more leverage here than if you resigned. Employers often calculate severance as one or two weeks per year of service, but that is not a rule. You can ask for more, especially if you have been there a long time or if you are in a senior role.

Health insurance continuation: Federal law (COBRA) lets you keep your employer's health plan for up to 18 months, but you pay the full premium yourself, which is expensive. Many employers will agree to pay your COBRA premiums for a few months as part of severance. This is worth negotiating because it can save you hundreds of dollars per month.

Reference and rehire status: Ask what the company will say about you to future employers. Some employers agree to give only dates of employment and job title. Others will confirm you are may be able to access for rehire. Getting this in writing prevents a future HR person from saying something damaging about your departure.

Unused vacation or PTO: Some states require employers to pay out unused vacation; others do not. Check your state's law. If your state does not require it, you can still ask the employer to include it in your severance package.

Bonus or commission: If you are owed a bonus or commission that has not been paid yet, ask whether it will be included in severance or paid separately on the normal schedule. Get the answer in writing.

What Employers Usually Will Not Negotiate On

Some items are harder to move. Employers often have strict policies on these, especially in larger companies where HR and legal teams oversee severance.

Non-disparagement clauses: Most severance agreements include language saying you will not say negative things about the company publicly. Employers rarely remove this, though you may be able to narrow it (for example, to explore only to public statements, not private conversations with a lawyer or therapist).

Non-compete or non-solicitation agreements: If your severance agreement includes a non-compete (you cannot work for a competitor for a set time) or non-solicitation (you cannot recruit former colleagues), these are harder to remove. You can ask, but be prepared for a no. If the restriction is very broad, this is a good reason to consult an employment attorney.

Confidentiality obligations: Employers almost never remove confidentiality clauses. These typically say you cannot share trade secrets or confidential business information. This is standard and reasonable.

When to Bring in an Employment Attorney

You do not need a lawyer to negotiate severance, but there are situations where one is worth the cost. Consult an employment attorney if your severance agreement includes a non-compete that would prevent you from working in your field, if you are being asked to waive your right to sue the company for discrimination or harassment, if the severance amount seems very low compared to your salary and years of service, or if your employer is pressuring you to sign quickly without time to review.

Many employment attorneys offer a free initial consultation. You can bring the severance agreement and ask whether the terms are reasonable and whether anything stands out as unfair or unusual. An attorney can also help you draft a counteroffer if you want professional language.

If you do hire an attorney, tell your employer in writing that you are having the agreement reviewed by counsel. This is normal and does not damage your negotiation. Most employers expect it, especially for senior roles.

After Your Employer Responds

Your employer will either agree to your request, partially agree, or decline. If they agree, ask them to send you a revised severance agreement reflecting the changes. Review it carefully to make sure everything you negotiated is actually in the new version. Do not sign until it matches what you asked for.

If they partially agree, you can decide whether to accept the compromise or push back on the items they declined. You typically get one or two rounds of back-and-forth before an employer stops negotiating. After that, you have to decide: sign what they are offering, or walk away.

If they decline everything, you still have options. You can ask for time to have an attorney review the agreement before you sign. You can ask whether there is any flexibility on a single item that matters most to you. Or you can sign the agreement as written. This is your choice to make based on your situation.

Frequently Asked Questions

Can I negotiate severance if I resigned?

It is harder, but you can try. Employers have less obligation to negotiate when you initiated the separation. However, if you resigned because of a significant change in your role, a substantial pay cut, or a hostile work environment, you may have more leverage. Explain why you left and what you need to move forward.

What if my employer says the severance offer is non-negotiable?

That is a negotiating position, not necessarily the truth. You can still ask for specific changes in writing. If they refuse again, you can ask an employment attorney to review the agreement before you sign. You are not required to accept the first offer.

Should I ask for a lump sum or payments over time?

That depends on your situation and your employer's policy. A lump sum gives you the money when ready, which is useful if you need cash right away. Payments over time can provide income stability. Ask what your employer offers, and if you have a preference, state it in your counteroffer.

Can I negotiate severance after I have already signed?

Almost never. Severance agreements typically say the terms are final once you sign. This is why negotiating before you sign is so important. If you signed without reading it carefully or without understanding what you were agreeing to, an employment attorney can review whether the agreement is actually binding, but do not count on being able to change it.

What should I do if the severance agreement asks me to waive my right to sue?

This is common and usually legal. However, the scope matters. Some agreements ask you to waive only claims related to the severance itself. Others ask you to waive claims for discrimination, harassment, or wage violations. If you are being asked to waive broad legal rights, consult an employment attorney before signing. You may be able to negotiate a narrower waiver.