What is actually included in a severance package?

Severance is compensation and benefits offered when employment ends. A package may include cash, health coverage support and help finding another job. Treat those as possible components, not a promise that your employer offers all of them. BetterUp explains these components.

Ask the employer to label each payment. Keep final wages, any leave payment and the proposed additional severance on separate lines. Beside each item, record the stated basis, amount, payment date and any condition attached.

The US calculation question

The US Department of Labor says the Fair Labor Standards Act, or FLSA, does not require severance pay. It describes severance as a matter of agreement and says payments are usually based on length of employment. That page does not establish a universal weeks-per-year formula. Read the Department of Labor explanation.

Request the formula your employer actually used. Ask whether it comes from your contract, a company plan or this particular offer. For work outside the US, verify the applicable local requirements before using any US example.

What should you request before discussing a number?

Request the complete severance offer letter, the agreement and the supporting calculation. Ask for the response deadline in writing. Then build a small folder containing the documents needed to check the offer.

• Your employment contract and amendments.
• The termination notice and stated reason for departure.
• Any severance policy supplied to you.
• Your recent pay records and leave balance.
• Relevant bonus or commission terms.
• Benefit information and any applicable equity documents.

Read the offer beside those records. Highlight discrepancies as questions rather than conclusions: “Which start date was used?” or “Where is the commission calculation?” Keep all unanswered questions in one email draft.

If there is no written offer yet

Use a simple request: “Please send the proposed departure terms, an itemized payment calculation and the deadline for responding. I would also like to confirm who can discuss changes.” This is a suggested message, not a legal notice.

If you are asked to resign as part of the process, get advice on that proposed step before submitting paperwork. Use a resignation letter template only after deciding that resignation is the appropriate course for your circumstances.

What should you ask for beyond more money?

Choose requests around your actual needs. Write down the expense or difficulty you want each request to address. Then rank your requests so you know which change matters most.

Career support, health coverage assistance and payment arrangements are possible discussion topics. Outplacement means help moving into another job, such as resume or interview coaching. Ask what is available before assigning it a value. BetterUp describes these options.

Hypothetical example: an online retailer

Imagine a marketing coordinator whose role is being removed. Their priorities are meeting upcoming bills and preparing for interviews. A focused request could combine an additional cash payment with resume support, rather than asking vaguely for a better package.

Write your own version in two sentences. For a reference request, use the wording in this job reference guide. Ask permission before naming anyone as your future contact.

How do you make a clear severance counteroffer?

State the change you want, explain its basis and invite a written response. Do not assume the first offer is final. Some employers negotiate individually, while others have stricter policies. The Muse explains that distinction.

Build the request from documented facts

Use your length of service, responsibilities, contractual terms and a specific transition proposal where relevant. Avoid claiming you know what colleagues received unless you have an appropriate, reliable basis. Do not invent a competing offer or threaten a claim you have not discussed with counsel.

If you offer handover support, define it. Propose a list of unfinished tasks, a completion date and a contact person. Avoid an open-ended promise to answer questions whenever the company needs help.

A message you can adapt

Thank you for sending the proposed terms. I would like to discuss increasing the additional severance payment to [amount] and including [specific benefit]. My request reflects [documented reason relevant to the proposal].

I can also propose a handover covering [defined tasks] by [date], subject to agreeing the terms. Please let me know which adjustments are possible and send any revised offer in writing.

Keep your first message short enough to answer. Attach the calculation or contract reference separately if needed. After a call, summarize the points discussed and ask the employer to correct anything you misunderstood.

If the answer is “this is our standard package,” ask whether the standard applies to every component. Then identify your top request again. Set yourself a review point rather than sending repeated messages with slightly different demands.

What needs checking before you sign the agreement?

Read the obligations as carefully as the payment. A severance agreement may include confidentiality terms, restrictions on working for competitors or a release of legal claims. A release is wording that asks you to give up specified claims. The Muse discusses these review issues.

Ask an employment lawyer to explain what the actual clauses mean for you. Do not decide that a restriction is enforceable or harmless from its heading alone. Bring the complete agreement, your employment contract and your questions.

• Is the payment amount clear, including the treatment of deductions?
• When does payment become due, and what must happen first?
• Does taking another job affect any payment?
• Which claims does the release describe?
• What information must remain confidential?
• Are future work activities restricted?
• When could repayment be requested?
• Are all negotiated benefits in the final version?

Ask about benefits separately

For unemployment after layoff, take the payment schedule to the relevant benefits agency and ask how to report it. Do not treat the employer's estimate as an eligibility decision. Ask a tax professional about your payment options rather than guessing from the headline amount.

Before booking a review, ask the lawyer what the fee covers. Specify whether you want an explanation, proposed edits or representation in negotiations. Ask them to identify any deadlines that need immediate attention.

What should you do after the employer responds?

Compare the revised offer with your original priorities and the reviewed agreement. Check every changed paragraph, not just the new payment figure. Keep a copy of the final document and the correspondence explaining the calculation.

1. Mark each request as accepted, declined or unanswered.
2. Resolve unanswered questions before making your decision.
3. Confirm the payment schedule and responsible contact.
4. Record the agreed handover and equipment return arrangements.
5. Set reminders to check payments and benefit end dates.

If negotiations stop, review the remaining options with your adviser. Ask specifically which payments need a separate entitlement check. Do not use the employer's refusal to increase the offer as your only basis for accepting or rejecting it.

Build your next steps with the first-week job loss plan. When another offer arrives, use the job offer evaluation guide to compare the full terms. Prepare the pay discussion with the salary negotiation guide.