Severance Pay: What to Expect After Layoffs

"Just sign here and you'll get 2 weeks severance." She almost did. After negotiation, she walked away with 4 months pay and healthcare. Here's exactly how she did it: Companies expect you to take their first offer. They count on you being too shocked to negotiate. That's why they pressure you to sign immediately. But here's what I learned as corporate counsel: Every severance package has wiggle room. Your negotiation leverage: Time Served • Under 2 years = 2-4 weeks • 2-5 years = 1-3 months • 5+ years = 3-6 months Companies know these ranges. Use them. What's Missing? • Healthcare coverage • Bonus payouts • Commission structures • Unused vacation time • Stock option acceleration • Outplacement services The Hidden Leverage Most severance agreements include: • Non-compete clauses • Non-disclosure terms • Release of claims These have value. Know yours. If You’ve Faced Retaliation or Discrimination • Fired after reporting misconduct or standing up for your rights? • Let go because of age, gender, race, or other protected traits? In those instances, the severance is often a low-ball offer. Speak to an attorney—your claims could be worth more. Don’t sign without exploring your options. Power Moves: • Ask for their severance formula • Request others' packages (anonymized) • Negotiate reference letters • Push for extended benefits • Question restrictive clauses • Ask if their decision follows internal layoff or severance guidelines. What to Avoid • Signing Too Quickly: Take the time you’re legally entitled to before making any decisions. • Overlooking Your File: Request and review your personnel file—it could reveal discrepancies that help your case. • Restrictive Clauses: Don’t agree to non-competes or non-disclosures unless they’re compensated appropriately. Remember: HR's first offer is never their best. They expect negotiation. Don't leave money on the table - and if something feels off, please consult an attorney. Tomorrow: The exact email template to negotiate your package. Follow for part 4 of the layoff survival guide (final part). Disclaimer: This information is for educational purposes only and does not replace professional legal advice. It does not establish an attorney-client relationship. Please consult a qualified attorney for advice on your specific legal situation. #EmploymentAttorney #CaliforniaEmploymentLaw #EmployeeRights #Severance

I get a lot of questions about severance packages. That is not odd. Especially in this day and age of layoffs galore. I recently talked with a follower who left significant money on the table, along with all of her unused vacation time and extended COBRA benefits because she panicked and signed the agreement HR put in front of her. So, here are my best tips for if/when you get laid off. 1. You get called into a meeting with HR, and they hand you a stack of papers and a pen. "Just sign this and we will get a check out to you" they say. 🛑 STOP!! Never, ever, ever sign anything without reviewing it. Severance isn’t a “gift.” It’s a contract. It’s negotiable. Too many people leave money, benefits, and leverage on the table because they’re pressured to sign right now. Here’s how to protect yourself: 🚩 1. Don’t Sign on the Spot If they tell you the offer “expires today,” that’s a pressure tactic. If they insist that this is a 'one-time' opportunity, say this..... “Just to clarify, are you saying this offer is only valid if I sign it right now, in this meeting?” “Can you put that statement in writing so I have it for my records?” -OR- Are you telling me I will lose severance entirely if I don’t sign today?” They will 100% back down. 🚩 2. Everything is Negotiable Severance isn’t always a flat “two weeks per year worked.” You can ask for more. Common negotiation points are.... Extra weeks of pay Health insurance coverage (COBRA paid for longer) Unused vacation or PTO payout Outplacement / career coaching services A neutral reference (no bad-mouthing) Vesting of stock or bonus payout 🚩 3. Watch the Fine Print The “release of claims” is standard, but look out for sneaky clauses. Non-compete → Don’t let them lock you out of your own industry. Non-disparagement → If you can’t say anything bad about them, make sure they can’t say anything bad about you either. 🚩 4. Ask for It in Writing Have them send you a copy of the severance DIGITALLY. So you can forward it to your attorney or anyone you trust for advice. If they refuse, tell them to document their refusal to provide you with a digital copy of the agreement. 🚩 5. Bring in Reinforcements A quick consult with an employment attorney can often get you thousands more. Sometimes just mentioning you’ll have a lawyer look it over changes their tune. Not all severance is created equal. I once had a client go from 3 months to 12 months severance because they gave it to someone else and she knew about it. Precedent is incredibly important. So, if you talk to your peers who have been laid off and they negotiated additional benefits, you CAN and SHOULD use that as leverage. ⚡ Severance is the final handshake with your old employer. Don’t let fear or pressure make you settle for less than you deserve. 👉 Have you ever negotiated severance? Or did you sign on the dotted line? #Severance #Negotiate #KnowYourWorth

The hidden power of staying on payroll. I’m on a mission to shine a light on the less understood components of severance. Like the benefits of staying on payroll. Did you know that your last day of work doesn’t need to be your last day on payroll? In fact, there is tremendous upside to staying on payroll for at least 8 weeks after your last day of work. →Still, technically, an employee of the company →Pay the employer-rate for medical, dental, vision →Access to employer-sponsored insurance, like STD →Ability to max out 401K, HSA, FSA, or pause contributions to increase cash flow Sometimes an employer is unwilling to add weeks of severance to an agreement, but negotiating extra time on payroll is a way to automatically add value to your package. Healthcare: Family coverage might cost you $1K/month, $2.5K/month to the company. Two extra months on payroll automatically creates $3K in value Retirement: Contributing only half the max for even one year could cost $25K+ over 10 years Those extra two months are also a great time to schedule as many medical appointments as possible in case you plan to switch plans once you’re COBRA eligible. Here’s one way to ask: “I understand the company can’t increase weeks of severance. One alternative that could be more cost-neutral for the company, but still very meaningful for me, would be to extend my payroll status for a couple of months. This would allow me to keep benefits in place and reduce disruption while I transition.” A layoff and a long job search can have all sorts of negative financial consequences, but by asking to stay on payroll for at least 8 weeks after your last day of working, you can mitigate some of them. What’s the most overlooked benefit you’ve seen in an exit package? --- 👋 Are you facing an exit and want to be sure that you're not leaving anything on the table? Hellos & Goodbyes is here to help. DM me or email me at sara@hellosandgoodbyes.com

I saw some advice last week that infuriated me. It preyed on the unemployed and was both inaccurate AND harmful. The poster claimed that if you accept a severance agreement you are effectively resigning, and that you won't be eligible for unemployment. 🤯 That is WILDLY untrue. First, not a single company will give a severance agreement to someone who is voluntarily leaving an organization. The only way that happens is if there was a sticky situation and it’s in the company’s best interest to get an agreement signed. Fun fact: Receiving severance is PROOF to an unemployment office that the decision was not wholly voluntary, therefore making you eligible for unemployment. How do I know this? It happened to me. I was being terminated unfairly. While they were firing me, they asked if I wanted them to tell the rest of the company that I was fired or that I resigned. I was young and in shock, so I decided to protect my ego and let them say that I had resigned. They offered me a small severance, which I took. Then, when it came time for unemployment, the company tried to block it. They told the unemployment office that I had resigned. 😡 I was beside myself. Who would do that??? As soon as I told the unemployment office that I had a severance agreement, though, they said “oh, then that means it wasn’t a resignation” and the company’s attempt to block my unemployment was denied. Please, please, PLEASE do your research and/or ask an actual expert before taking the advice you read as truth. Do NOT let advice like that keep you from applying for benefits that you have earned / are owed. Being unemployed is hard enough without all of this 💩 ----- Facts about severance / unemployment: -Being offered a severance agreement simply means that the company is giving you something and expecting something in return. It’s up to you whether or not you want to take it. -How a state categorizes severance payments indicates when unemployment benefits can be distributed. In some states (like CA and IL), severance is NOT considered to be earned wages and you’re therefore eligible to take both severance and unemployment simultaneously. In other states, severance IS categorized as earned wages and you’ll need to finish receiving severance before you’re eligible for unemployment. Know your state’s laws! -Severance can be paid as a lump sum or in installments. In states where you’re ineligible to receive unemployment payments until after severance ends, it’s in your best interest to try and negotiate to have your severance paid out in a lump sum. -Read the fine details of your severance agreement. Most companies operate in good faith, but some don't. If you're concerned or confused, use your network to consult an actual employment attorney before signing.

“I got a ₹50 lakh severance package.” Not me. But someone close to me did. And the strangest part? She didn’t even know she was eligible. When I was laid off, I, too, didn't know how much severance I should receive. That’s what pushed me to write this. Because every time layoffs happen, we talk about → mental health → job search stress → market slowdown But who really talks about severance? What is it? How much are you owed? And what should you ask before signing anything? Let’s break it down. 👇 What severance looks like at top US tech companies: 📍 Meta → 16 weeks base pay → + 2 weeks for every year served → 6 months health insurance → RSUs + PTO payout + career coaching Example: Annual salary = $120K (~$10,000/month) Experience = 3 years 16 weeks = $30,000 6 weeks (2 × 3 years) = $15,000 PTO payout ≈ $2,000–$4,000 RSUs = $10,000–$25,000+ 👉 Total: $60,000–$75,000+ (₹50–60 lakhs) Itna paisa... aur logon ko pata bhi nahi hota ki woh claim kar sakte hain. (So much money... and people don’t even realize they can claim it.) 📍 Google → 16 weeks base + 2 weeks/year → 6 months medical + immigration support 📍 Microsoft → 12 weeks base + 2 weeks/year → Varies by role, location, and policy The real problem? → Not every company is transparent → Not every employee knows what's negotiable → And most people are too shocked to ask. If you’ve been laid off (or sense it’s coming): ✅ Ask for written severance terms ✅ Clarify what’s included—pay, RSUs, PTO, insurance ✅ On a visa? Take help from their immigration team - I spoke to Fragomen. ✅ Don’t sign instantly—review it ✅ And yes, you can negotiate. They owe you a ticket back to your country if you're on a Visa. Panic mat karo. (You worked too hard to walk away without clarity.) Sometimes, it’s not just the job you leave—it’s the system you finally start to understand. And as much as getting laid off hurts, don't let that blur what you deserve. #Layoffs #SeverancePackage #JobSearchIndia #TechIndustry #RoshniChellani #WomenInTech #BigSisterAdvice #CareerSupport

With all the layoffs, it is important to understand severance agreements. Companies are not required to offer you severance. They do it to buy your silence and to eliminate liability. So that you will never take legal action against them. They don’t do it because they feel bad for letting you go. They are not doing you any favors. Look at it through that lens. Employers want you to sign a severance agreement. In most cases more than you want the money they are offering. Almost every time, their first offer is not their best offer. Most people don’t realize they can negotiate severance. Especially if your employer behaved badly. Employers seek to limit your ability to: ✅ Work for a competitor ✅ Talk about your experience ✅ Pursue legal remedies Factors that impact your ability to negotiate severance include: ✅ Seniority ✅ Length of employment ✅ Reason for leaving ✅ Attitude of leadership You need to assess your situation to determine how hard to negotiate. Top 🔟items you can negotiate as part of a severance agreement. 1️⃣ Money. Companies usually offer between 2 and 4 weeks per year of employment. You can ask for more. 2️⃣ Health care coverage – ask to have it covered for 3-12 months. Request it covered through the first of the following month, you will be covered for the entire month. 3️⃣ Vacation Pay/PTO – in some states it is the law to payout 100% of unused PTO. In many states there is none. Ask for it as part of your severance. 4️⃣ Reference letter – add language into the agreement for a written reference letter. Even better, get it before you sign. 5️⃣ Non-compete clauses- seek to have them removed via your severance agreement. They took your job away. They don’t have a right to limit your ability to find another one. 6️⃣ Outplacement services – many companies provide outplacement services for support in seeking a job. Ask for a year’s coverage. 7️⃣ Release of all claims – the company may have claims against you for claw backs, money owed, pay errors, etc. Make sure the agreement releases you of all claims by the company. 8️⃣ Stock Options – in some instances you can negotiate an accelerated vesting schedule and timeframe to exercise the options upon departure. 9️⃣ Expense Reimbursement – make sure the agreement covers all expenses incurred and owed to you by the company. Not something netted out of your settlement. 🔟 Confidentiality agreement and definitions of breaches. Understand your rights you are giving up, how long the restriction is enforced, and the penalties for breach. Companies can try to place unreasonable penalties in agreements. Never rush into signing a severance agreement. Ask for an extension if you are provided a few days or a week to review it. If you need help to assess your situation, please reach out. Often it helps just to talk things through and know your rights and options. I am happy to advise and help you get the most out of your severance. #sales #layoffs #severance

7 Simple Steps For Negotiating Your Severance Package: Losing your job? I bet you didn’t know you can negotiate your severance. Here’s how in 7 simple steps: 1. Don’t Sign Anything Right Away Most employees think they have no leverage during a layoff. Employers try to capitalize on that by getting you to sign something without knowing you can negotiate it. Your first step in this process is to ask how much time you have to review the severance package. 2. Consider All Your Options Don’t just look at how long you’ll get paid your base salary. Review: - PTO payouts - COBRA and health benefits - Stock options and bonuses - Stipends for outplacement services The more options you have, the more leverage you have. 3. Assess Your Leverage - Is the company violating any of their own policies with this layoff? - Are they only laying you off or are they laying off a whole team? - Are they worried about bad PR or press? Answering those questions will help you see how much leverage you have. 4. Ask For More Than You Expect This is Negotiation 101. When you make your ask, include more than you think you’ll get. This way, when they say no to some of the items, the total offer value is still higher than what they initially offered. 5. Frame Your Ask In Their Terms Think back on the leverage brainstorm you did. Then try to frame your asks in relation to the things that matter to this company. Ex: Are they worried about bad PR? Then you say something like, “I’d be happy to sign the NDA you sent me if we can extend healthcare benefits by 90 days.” 6. Get It In Writing Don’t accept a verbal agreement as final. As is true with any situation like this, stand firm on having a written offer from the company before you sign anything or make any commitments. It may feel uncomfortable, but it’s a critical part of ensuring you get what you negotiated for. 7. Don’t Be Afraid To Seek Legal Help If your budget allows for it, an employment attorney can often help you uncover areas of leverage. If you consider the value of extra healthcare, more severance pay, etc., consulting an attorney is often a move that can pay for itself many times over. Also, this post isn’t legal advice and you should consult an attorney for that anyway :)