Losing a job can shock you. You worry about money, health care, and what comes next. A fair severance package will not fix everything, but it can give you time to breathe and plan. This guide shows you how to ask for what you need with calm strength. You will learn what to check in your severance agreement, what you can request, and how to respond when the company pushes back. You will see when you can handle talks yourself and when you should speak with a severance negotiation lawyer in New Jersey or your own state. You will also learn how severance ties to unemployment, health insurance, and your next job. You do not need to feel powerless. With clear steps and firm boundaries, you can leave on terms that respect your time, your work, and your future.
Know what severance is and what it is not
Severance is pay and benefits your employer may offer when your job ends. Federal law does not require severance in most cases. Your rights come from three places. Your contract. Company policy. Federal and state law.
You should look at:
- Your job offer letter and any contract
- The employee handbook and severance policy
- Past severance offers to coworkers if you know about them
Severance often comes with strings. You may need to sign a release of claims. You may agree to keep quiet about the agreement. You may have limits on where you can work next. You trade rights for money and time. You need to know what you give up.
You can read about your basic rights against job loss and pay issues at the U.S. Department of Labor site here https://www.dol.gov/general/topic/termination.
Key parts of a severance package
Most offers cover three main parts.
| Part of package | What it often includes | What you can ask for
|
|---|---|---|
| Money | One or more weeks of pay per year of service | More weeks of pay, bonus share, unused vacation payout |
| Health coverage | COBRA notice and maybe a short subsidy | Extra months of paid COBRA or cash to cover premiums |
| Future work and reputation | Basic reference and non-disparagement | Neutral reference letter, job search help, clearer language |
You should also look at stock, retirement accounts, unpaid expenses, and any bonus that you already earned.
Check your timeline before you sign
Employers often set short deadlines. You may feel forced to sign. You still need time to read and think. Federal law gives some workers set review times for waivers of age claims. You can learn more about waivers and releases from the Equal Employment Opportunity Commission here https://www.eeoc.gov/laws/guidance/understanding-waivers-discrimination-claims-employee.
Use this simple plan.
- Day 1. Take the agreement home. Do not sign at the meeting.
- Day 2. Read every line. Mark anything you do not understand.
- Day 3. Talk with a trusted person or a lawyer. Ask about risks.
If the deadline feels unfair, you can ask for more time in writing. Many employers agree.
Know your leverage
You may have more power than you think. Your leverage comes from three things.
- How long you worked there and how senior you are
- Whether you raised any complaints about pay, safety, or bias
- How much the company wants a clean and quiet exit
If you raised concerns about harassment, bias, or safety, the company may face more risk. That can support a better offer. You do not have to threaten. You can state facts. You can say that you want a fair and calm resolution for both sides.
What to ask for in your severance talks
You can ask for more than money. You can ask for three groups of support.
- Income. More weeks of pay. A share of any earned bonus. Payout of unused vacation or paid time off.
- Health and benefits. Extra months of employer paid COBRA. A lump sum to cover health care. Extended time to exercise stock options.
- Future work. A neutral or positive reference. Clear language that you were laid off, not fired for cause. Mutual non-disparagement so both sides agree not to speak in a harmful way.
You can also ask to soften or remove noncompete or nonsolicit terms that block your job search. That change can be worth more than extra pay.
How to speak during the negotiation
Use calm, clear words. You do not need legal terms. You can use this three step method.
- State the issue. “The amount of severance pay is low for my years here.”
- Give a short reason. “Others at my level received more weeks of pay.”
- Ask for a fix. “I ask for twelve weeks of pay and three months of COBRA subsidy.”
Keep your tone firm and steady. You can show that you want a fair outcome for both sides. You can say that you want to avoid conflict and move on with dignity.
Protect your unemployment and health coverage
Severance can affect when you can claim unemployment in some states. You should apply for unemployment right away unless your state rules say you must wait. You can check your state rules through links on the Department of Labor site listed earlier.
For health coverage you often have three options.
- COBRA continuation of your job plan
- A plan on the Health Insurance Marketplace
- Coverage through a spouse or partner
Severance pay can affect your budget for premiums. Try to match the severance term to the time you need to find new work.
When to get legal help
You should speak with a lawyer if:
- You have a contract with complex bonus, stock, or noncompete terms
- You raised complaints about bias, harassment, or retaliation
- The company is asking you to waive many rights and pay is low
A local employment lawyer can read your agreement, explain your risk, and suggest edits. You can ask for a short paid review so you know the cost up front. If you cannot afford a lawyer, you can ask your state bar for low cost or free referral options.
Leave with a plan
Before you sign, write three things.
- Your monthly budget during your job search
- Your health coverage plan for the next six months
- Your job search steps for the next four weeks
A fair severance package gives you room to follow that plan. You do not control the job loss. You do control how you respond. With clear questions and steady courage, you can protect your money, your health, and your future work.
