Severance Agreements: Should You Sign or Negotiate?
Published 10 Nov 2025
In an age where workers face increasingly complex workplace challenges, understanding your rights is essential. Before signing a severance agreement, know what you are giving up.
Key takeaways
Severance agreements are negotiable, not take-it-or-leave-it
Most include a release of all legal claims
Employees over 40 get 21 days to review under the OWBPA
Lawyer review can significantly increase your payout
What Is Typically in a Severance Agreement
Most include monetary payment, benefit continuation, and a general release of claims. They may also include non-compete clauses, non-disparagement provisions, and confidentiality requirements.
When to Negotiate
You May Have Legal Claims
Potential legal claims give you significant negotiating leverage.
The Amount Seems Low
If the severance does not adequately compensate for loss of income during your job search.
Terms Are Too Restrictive
Broad non-competes or non-disparagement provisions should be narrowed.
Benefits Are Not Addressed
Cover health insurance, stock options, retirement benefits, and unused vacation.
Why You Need a Lawyer
An employment lawyer can evaluate your claims, identify problematic terms, and negotiate a better package. The improvement almost always exceeds the cost of representation.
Frequently Asked Questions
How much time do I have to review a severance?
If you are 40+, the OWBPA gives you at least 21 days to review and 7 days to revoke.
Can I negotiate severance after being laid off?
Yes. Potential legal claims, long tenure, and specialized knowledge strengthen your position.
What if my employer says the offer is final?
Most employers are willing to negotiate, especially when presented with potential legal claims.
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