A useful starting point for a severance discussion is a clear record of the offer: what it includes, what is unclear, and which possible changes matter to the person receiving it. Some employers consider changes; others apply fixed terms. Preparation can make a discussion more specific, but it cannot predict an increase or decide whether negotiating is appropriate.
This article focuses on preparation before a conversation or written counter. The complete severance negotiation guide covers the wider process. For the message itself, the counter-offer writing framework explains how to turn a chosen proposal into clear correspondence.
This guide is educational information only. It is not legal advice, and it is not a substitute for the advice of an attorney. For advice about your specific situation, consult a licensed employment attorney in your state.
Start With the Written Offer
An offer may be spread across a separation agreement, cover email, company plan, benefits notice and equity award documents. A headline such as “salary continuation and benefits” does not establish the payment dates, who pays the insurance premium, or what happens to an unvested award.
The Department of Labor's severance-pay explanation states that the Fair Labor Standards Act does not require severance pay. Contracts, employer plans and applicable state law can raise separate questions. A generic industry comparison does not establish what an employer must provide.
A preparation record can distinguish these three categories:
| Category | Example | Why the distinction matters |
|---|---|---|
| Confirmed in the offer | A payment schedule appears in a named paragraph | It provides a concrete starting point for comparison |
| Missing or unclear | The offer mentions continuing health coverage without stating the employer contribution | Clarifying an existing term is different from requesting an additional benefit |
| A possible change | A different payment schedule or a longer employer contribution | This is a proposal for discussion, not an existing promise |
The offer-comparison guide shows why packages with the same cash amount can have different practical value.
Build a Preparation Worksheet
The useful detail is the wording in the actual documents. The following fields make it easier to see where a discussion needs more information.
| Topic | Details to record | Question the record can help answer |
|---|---|---|
| Cash severance | Gross amount, salary definition, payment dates and conditions | Is the comparison using base pay, total compensation or an amount after withholding? |
| Health coverage | Coverage-end date, employee premium, employer contribution and contribution-end date | Does “continued coverage” include employer-paid premiums? |
| Bonus or commission | Relevant plan, performance period, payment date and separation conditions | Is the amount addressed in the severance offer or a separate compensation plan? |
| Equity | Grant type, individual vesting dates and post-employment provisions | Which award terms need clarification before the package can be compared? |
| Restrictions | The actual clause, duration, activities covered and stated exceptions | Which terms need an employment attorney's interpretation? |
| Practical terms | References, outplacement, equipment return and transition obligations | Are these benefits, obligations or points still to be agreed? |
Access to health coverage and an employer contribution towards its cost are separate matters. The Department of Labor's COBRA resource explains continuation coverage; the offer and plan documents establish the proposed contribution and timing.
Compare Like With Like
The free severance calculator provides an illustrative estimate using the details entered. It is a starting point, and an actual offer may be higher or lower. It does not establish an employer's policy, the value of a release, or what a negotiation will produce.
Useful comparisons keep the assumptions visible:
- The same pay basis: base salary and total compensation describe different amounts.
- The same payment period: a stated total and continuing payroll can have different timing and conditions.
- The same benefits: a cash payment and access to coverage do not necessarily include an employer subsidy.
- The same evidence quality: a current written plan, an old public announcement and an anonymous employee report support different levels of certainty.
A package that compares favourably on cash can still contain unclear terms. Conversely, a lower cash figure does not by itself establish that an employer will increase it. There is no universal percentage to add to every offer.
Separate Review Dates From Negotiation Dates
A request for clarification or an extension is not confirmation that a deadline has changed. The offer's stated date, any agreed extension and any applicable legal review period need to be considered separately. The signing-date checklist explains the different dates an offer can contain.
For a covered age-discrimination waiver, the federal OWBPA generally requires at least 21 days to consider an individual offer, or 45 days for a group programme, and 7 days to revoke after signing. These requirements concern workers 40 or older and, for private businesses, employers with 20 or more employees, subject to the law's coverage requirements. Sources: EEOC waiver explanation and private-employer coverage.
Those conditions do not create an automatic review period for every severance offer. A licensed employment attorney can assess the applicable requirements and the effect of any proposed response.
Turn Preparation Into a Discussion Outline
A concise outline can keep a conversation focused:
- The existing term: the paragraph, amount or date as currently written.
- The unresolved question: information needed to understand that term.
- The possible revision: a change the employee has independently decided to discuss.
- The factual context: an accurate explanation, such as the relevant payment schedule or documented benefit cost.
- The record of the response: what was discussed, what remains unresolved and whether a revised document was provided.
For example, “the agreement does not identify who pays the continuing insurance premium” is a clarification question. “I would like to discuss an employer contribution towards that premium” is a proposed change. Keeping them separate avoids treating an unanswered question as a rejected request.
The negotiation email templates provide correspondence examples for different stages. They are self-completed starting points, not predictions about how an employer will respond.
Questions for an Employment Attorney
Some issues require interpreting an agreement or applying law to individual facts: restrictions on future work, releases of claims, possible discrimination or retaliation, plan eligibility, and the effect of accepting or countering an offer. A preparation worksheet can make those questions clearer without attempting to answer them.
There is no universal package-value threshold for obtaining legal review, and no assured financial return from it. Scope, fees and the questions to be addressed are matters to discuss with the professional. Whether to negotiate, accept or decline remains the individual's decision.