How to Negotiate a Severance Package

A severance offer is a starting point, not a final answer — companies typically build some negotiation room into the first draft, especially for longer-tenured or higher-level employees. Most people never ask for more, either because they don't know it's negotiable or because they want to avoid an uncomfortable conversation on their way out the door.

What's Usually Negotiable

• Weeks of severance pay: standard offers are often 1–2 weeks per year of service, but this baseline can move, especially if you push back
• Health insurance continuation: ask the company to cover your COBRA premiums for a set period instead of you paying the full (and often very expensive) unsubsidized rate
• Unused PTO and bonus payout: confirm accrued vacation and any prorated annual bonus are included, not just base severance
• Outplacement services: career coaching and job search support, typically at no extra cost to you if you ask
• Non-compete or non-solicit release: some companies will narrow or waive these in exchange for a smooth, quick signature
• Reference letter and neutral reference commitment: get this in writing, not just a verbal promise

Before You Sign Anything

If you're 40 or older, federal law (the Older Workers Benefit Protection Act) gives you at least 21 days to consider an individual severance offer and 7 days to revoke your signature after signing — use that time. For a package worth negotiating over, a one-time consultation with an employment attorney (often $200–$500) can identify leverage points you'd otherwise miss, and can pay for itself many times over.

How to Ask

Respond in writing, thank them for the offer, and specifically list which terms you'd like revisited — don't reject the whole package outright. Frame requests around fairness and tenure ("given my 6 years here, I'd like to discuss extending the severance period") rather than threats. Most negotiations are handled by HR or a manager who has more flexibility than the first offer suggests.