How to Negotiate Severance Pay:
Script and Strategy 2025

Why severance is almost always negotiable

Most employers make an initial severance offer expecting negotiation. They often have budget flexibility, especially for longer-tenured employees or when they want a clean departure with a signed release of claims. The worst they can say is no — and their first offer rarely is.

What to negotiate beyond weeks of pay

• More weeks of pay — the most obvious, but not the only lever
• Health insurance extension — having employer pay COBRA premiums can be worth $500–$1,500/month
• Vesting acceleration — ask for unvested stock options or 401(k) match to vest immediately
• Outplacement services — career coaching and resume help worth $2,000–$5,000
• Later end date — staying on payroll longer maintains benefits and improves unemployment claims
• Neutral reference agreement — written agreement on what they'll say about you
• Non-disparagement terms — mutual, not just binding on you

The negotiation script

Opening response to initial offer:

"Thank you for the offer. I want to reach a fair resolution and I'm committed to a professional transition. That said, given my [X years of service / specific contributions / the circumstances], I was hoping we could discuss improving the package. I'd like to propose [specific ask]. I'm also flexible on the structure if that helps."

When to bring in an attorney

Consider consulting an employment attorney before signing if: the severance exceeds $50,000, there's a non-compete clause, you have potential legal claims against the employer, or the language is complex or one-sided.

Frequently Asked Questions