# Severance: What You Can Negotiate When You're Let Go
Severance is a negotiation, not a gift. Employers offer severance packages to employees they lay off — but the initial offer is rarely the final offer, and most employees accept it without countering.
What you have leverage over
**Severance amount:** The standard formula is 1–2 weeks per year of service, often capped. This is a starting point, not a ceiling. Factors that increase your leverage: seniority, specialized knowledge that requires transition time, the proximity of a vesting date on equity, and the cost to the employer of you creating friction.
**Equity acceleration:** If you have unvested equity, accelerated vesting (single trigger or double trigger) may be negotiable — especially if you are being laid off through no performance issue. Months of acceleration can be worth significant money.
**Benefits continuation:** COBRA health insurance is expensive but available. Negotiating continued employer-paid premiums for 1–3 months beyond your last day is common in senior-level negotiations.
**Bonus proration:** If you are laid off before a bonus payout date, negotiating a prorated bonus for the months worked is reasonable. Many employees do not ask.
**Non-compete scope:** If you are being asked to sign a non-compete as part of receiving severance, the scope (geography, duration, industry) is negotiable. Narrower is better — and increasingly, non-competes are unenforceable or illegal in many states.
**Reference terms:** Explicitly agree on what your former employer will say when contacted. "Eligible for rehire" matters.
Interactive Model
Severance Package Calculator
Assess your package, identify what's negotiable, and calculate runway.
Total package value
Cash runway
3.1 months
Negotiation potential upside
$9,231
Estimated if you successfully negotiate 50% more severance weeks
Severance is taxable income. ADEA provides a 21-day review window for workers 40+. Consult an employment attorney before signing for packages involving significant compensation or potential legal claims.
The leverage you have and the leverage you don't
**You have leverage when:** - You have institutional knowledge critical to transition - You are being separated without cause (layoff, not performance) - A vesting date is imminent - You can demonstrate value you have provided - You have legal counsel and grounds for potential claims
**You have less leverage when:** - The separation is for cause - You have minimal tenure - Your role is highly replaceable - The company is in financial distress
The signing window
Standard severance agreements include a 21-day review window for employees over 40 (ADEA requirement) and a 7-day revocation period after signing. Do not sign immediately. Use the review window to consult an employment attorney if the amount is significant. A one-hour consultation often identifies issues worth thousands.
What not to do
Do not immediately sign anything on the day you are notified. Do not vent publicly about the company while negotiations are ongoing. Do not assume the package is fixed. Do not ignore the non-disclosure and non-disparagement clauses — understand what you are agreeing not to say.
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*Related: [Income diversification](./income-diversification) — severance buys time; diversified income reduces dependence on any single employer. [Total compensation](./total-compensation-calculator) — understanding your full package makes severance evaluation more accurate.*