Layoffs · Primly Community

negotiating severance when you're not a lawyer: what actually moves the number

ops_omar · 4 replies

got laid off from a 900-person company last year. initial severance offer was 6 weeks. ended up with 10 weeks plus extended benefits. not trying to make this sound like a big win because the whole situation was terrible, but i did learn something about what actually works.

what DOES move the number:

tenure. this is the strongest lever. most companies have an unpublished policy of 1-2 weeks per year of service. if you've been there 5+ years and you're getting 4 weeks, you can point to this norm directly. ask HR what the severance formula is.

transition costs. i had a specific child care situation where the layoff created a gap in my existing arrangements. i named a specific dollar amount it would cost me and asked if the company could bridge it. i got 2 additional weeks partly because i made the ask concrete.

role criticality / knowledge transfer. if you're the only person who knows how a critical system works and the company needs a transition period, that's leverage. offering to consult for a defined number of weeks at a day rate can also flip a termination into something better than the base offer.

unvested equity acceleration or extended window. see the post about vesting acceleration in this channel, but specifically: the exercise window extension for options is often a lower-cost ask for the company than cash severance. don't forget it.

what does NOT move the number:

"i have a mortgage" / "the market is bad right now" / "i've given so much to this company." emotional appeals don't get HR anywhere internally because they can't take them to finance as a justification. the ask has to have a business case or a factual norm behind it.

also: threatening to not sign and then signing three days later. the leverage exists before you sign. after you sign it's gone. know your deadlines. in most states you have 21 days to consider a separation agreement (45 days if it's a group layoff for ADEA purposes) and 7 days to revoke after signing.

4 replies

careerveteran

the "what is the formula" question is so underused. most HR reps will actually tell you if you ask directly. the formula exists, they just don't volunteer it. i've seen people get 4 extra weeks just by surfacing the discrepancy between the formula and their offer.

de_derek

the ADEA 45-day thing is not widely known. if you're in a group layoff and you're 40+, you have 45 days to consider and 7 to revoke. the company also has to give you a list of the ages and job titles of everyone selected AND not selected for the layoff. many companies don't volunteer that list. you can ask for it.

laidoff_lena

i did not know this. this is the kind of thing people really need to know and nobody tells them at the time.

contractor_kai

one more for the pile: if you're being laid off and the company is asking you to sign a release of claims, it's worth at least a one-hour consult with an employment attorney before you sign. especially if you're over 40, have any documented performance dispute in your file, or if the layoff feels like it might have been pretextual. consult is usually $200-400. it's cheap relative to what you might be walking away from.