Guides / Severance negotiation

How to negotiate a severance package

A severance offer is often a starting point. A polite written counter-offer asking for more pay, help with health coverage, and a neutral reference costs nothing to send. FixLetter’s severance letters are free.

1. Do not sign right away

Read the agreement and note the deadline to sign. Severance agreements usually include a release of legal claims, so understand what you are giving up. Consider having an employment attorney review it.

2. Know what you can ask for

Common requests include more weeks of pay, payment of COBRA premiums, a neutral reference, extra time to exercise stock options, outplacement help, and keeping your laptop or phone.

3. Understand COBRA

COBRA generally lets workers at employers with 20 or more employees keep group health coverage for a limited time after leaving, but you may have to pay up to 102% of the premium (see the US Department of Labor). Asking the employer to pay those premiums for a few months can be worth a lot.

4. Make a clear, respectful counter-offer

List each change you want and briefly why (tenure, results, circumstances). Say you are ready to sign once the agreement reflects them.

5. Get the final terms in writing

Make sure every agreed change appears in the revised agreement before you sign.

What your letter should include

• A thank-you for the offer
• The specific changes you want (weeks of pay, COBRA months, reference)
• A brief reason based on your tenure and record
• A statement that you are ready to sign on revised terms
• A request for a revised agreement

Keep a copy of everything you send, and note the date you sent it.

Frequently asked questions

Can asking for more cause the company to withdraw the offer?

It is possible but uncommon when the request is polite and reasonable. If you are worried, have an attorney review your situation.

What is a neutral reference?

An agreement that the company will confirm only your dates of employment and job title to future employers.

Is the severance letter free?

Yes. Employment letters on FixLetter are free to copy and download.