How much severance should I ask for?

A common benchmark is one to two weeks of pay per year of service in the US, plus a multiplier for role level. Before you decide on a number, research your employer's standard formula, your local norms, and check whether a mass layoff triggers WARN Act notice requirements.

Should I sign the severance agreement immediately?

No. Take the full review window, read every clause, and list what you are giving up (claims, confidentiality, non-compete, equity treatment). Signing early removes all leverage; the deadline is often negotiable even when it looks fixed.

Can I negotiate severance even in a mass layoff?

Yes, within limits. Companies often have room on the less-standardized items: extended benefits, outplacement, equity vesting, and a neutral reference. Ask for one or two specific adjustments rather than a blanket 'more money'.

What is the WARN Act and does it apply to me?

The US WARN Act requires 60 days' advance notice for plant closings and mass layoffs at employers with 100+ employees, with exceptions for unforeseen business circumstances. It applies in specific situations — check whether your layoff triggers it rather than assuming it does.

Do I need a lawyer to review a severance agreement?

For any package above a few weeks of pay, or that includes non-compete, equity or age-related waiver clauses, an employment attorney review is usually worth the cost. Many employment lawyers offer a flat-rate severance review. This article is general information, not legal advice.

Negotiate a Severance Package

Not legal advice. This article explains common severance practices for general information. Employment law varies by state and country, and your specific situation may differ. Before signing anything, consider a consultation with an employment attorney. Official US references: the US Department of Labor on WARN notices and the EEOC's age-discrimination guidance.

Most people treat a severance offer the way they treat a parking ticket: it arrives, it looks official, and there is a number on it that feels non-negotiable. That instinct costs people real money. Severance is a contract like any other — the company wants something from you (a release of claims, confidentiality, often a non-compete), and what you get in exchange is on the table until you sign. A few hours of preparation can be worth a month of pay.

Here is the process that works: first, figure out what your package is actually worth. Second, read the agreement clause by clause and list what you are giving up. Third, ask for specific adjustments in writing. Fourth, only then decide whether to sign.

Step 1: Know what the package is worth

Severance in the United States is largely unregulated — no federal law requires it for most layoffs — which is exactly why norms matter. The most common formula you will see in practice is one to two weeks of base pay per year of service, with the multiplier rising for more senior roles. A coordinator with 4 years at the company might be offered 4 to 8 weeks; a director with 10 years might see 10 to 30 weeks. Some companies also add a flat "goodwill" month. These are patterns, not rules — your real data point is your own offer and what your employer has done historically.

To value a package properly, convert everything to weeks of pay, including:

Lump sum vs. paid continuation (paid continuation means you keep benefits flowing, which is usually worth more).
Accrued vacation or PTO payouts — legally required in many states, so it should not be framed as generosity.
Unvested equity: many plans accelerate vesting on termination; check your plan documents.
Bonuses already earned or prorated for the year.
Outplacement, career coaching, or extended health coverage (COBRA subsidies).

Put your own numbers in the severance calculator to see the US range (1–2 weeks per year) and the China statutory N/N+1/2N framework side by side, then add the extras on top. The calculator is an estimate, not a promise of what your employer will offer — use it to know your floor, not your ceiling.

Step 2: Read the agreement like a contract, because it is one

Set aside thirty quiet minutes and read the document end to end, then re-read the clauses that cost you something. The four that matter most:

The release of claims. You are almost certainly waiving your right to sue under federal and state employment laws, including discrimination and wage claims. If you are 40 or older in the US, the Older Workers Benefit Protection Act gives you a minimum review period (21 days for standard releases, 45 for group layoffs) and a 7-day revocation window — those are legal minimums, and you can still ask for more time.
Confidentiality and non-disparagement. Check both directions: what you cannot say about the company, and whether the company is bound to give you a neutral reference.
Non-compete and non-solicit. These can quietly block your next job. Several US states (including California) sharply restrict non-competes, and the FTC attempted a federal ban in 2024; enforceability varies widely. If the clause looks aggressive, this is a strong negotiation point.
Equity treatment. What happens to vested and unvested options or RSUs, and the deadline to exercise.

One more check: was this a mass layoff? If your employer has 100 or more employees and is closing a site or laying off 50+ people at one location, the federal WARN Act generally requires 60 days' advance notice (some states have their own mini-WARN laws with lower thresholds). If notice was short, you may have a wage claim for the gap — a fact that changes your leverage and is worth confirming with the DOL's guidance or an attorney.

Step 3: Ask for specific adjustments, in writing

You have the most leverage before you sign and the least after. That does not mean demanding double; it means asking for one or two well-reasoned adjustments. Companies frequently have flexibility on:

Additional weeks of pay (ask for 2–4 extra weeks as a reasonable first ask).
Extended benefits or a COBRA subsidy for a fixed period.
Accelerated equity vesting.
Outplacement or a professional reference commitment.
More time to review and sign.

A short, professional email works better than a phone call — it gives you a written record and gives them time to respond. Sample:

Subject: Severance review — [Your name]

Hi [Name],
Thank you for the separation agreement dated [date]. I have reviewed it carefully. I would like to request two adjustments: (1) extending the salary continuation from [X] weeks to [X+4] weeks given my [N] years of service and the current job market, and (2) extending the COBRA subsidy from [X] months to [X+3] months. I am also requesting a neutral reference from [manager name].
I would be glad to sign promptly once we agree on these points. Please let me know if you need anything from me.
Best regards, [Your name]

Notice what this does: it is specific, it gives a reason tied to facts (years of service, market), it bundles the asks, and it signals you will sign once resolved. No threats, no emotion — leverage is quiet.

Step 4: Decide, and get it in writing

When you reach agreement, insist the final terms are in writing before you sign — verbal promises in a layoff conversation are worth nothing. Then keep your own copy of the signed document and the email thread. If anything was promised in the negotiation but is not in the signed paper, it does not exist.

Red flags that mean "slow down"

A deadline measured in hours or "by end of day" — artificial urgency is a negotiation tactic; you may have statutory rights to more time.
A non-compete with no carve-out for your industry.
Language that forfeits already-earned wages or commissions.
Pressure to sign without the agreement in writing.
Being asked to waive claims "for anything that might arise in the future" beyond what the law allows.

If you were laid off in China

The Chinese framework is statutory rather than negotiated: under Article 47 of the Labor Contract Law, economic compensation (经济补偿) is one month's salary per year of service, with periods of six months to a year counting as a full year and under-six-month periods counting as half a month — plus a cap at three times the local average wage for high earners, and a 12-year ceiling. Article 40 adds a month's pay when an employer terminates without 30 days' notice; Article 87 doubles the compensation for unlawful termination. For non-technical professionals in China, the practical point is to check which of these situations applies to you and to confirm your years-of-service calculation before signing anything. The severance calculator computes all three tiers (N, N+1, 2N) for you.

Before you sign: the 24-hour checklist

Converted every benefit into weeks of pay and compared it with the 1–2 weeks/year norm.
Checked WARN / mini-WARN notice obligations (mass layoffs only).
Reviewed release, confidentiality, non-compete and equity clauses.
Asked for 2–4 extra weeks and one non-monetary item, in writing.
Confirmed any verbal promises are in the signed document.
Considered an employment attorney review — especially if you are 40+ or the package is large.

The fine print that changes the number

Two details routinely change what a package is really worth, and both are negotiable in the margins. Taxes: in the US, severance is generally treated as taxable wages, and lump-sum payments can push you into a higher withholding bracket for that single check — ask whether the company will gross up the payment (add enough to cover the tax difference), which some employers will do to settle quickly. Benefits: the difference between "cash only" and "paid continuation with benefits running" can be worth thousands in COBRA premiums alone; if you have a health condition or a family on your plan, extended coverage may be worth more to you than an extra week of pay. When you compare offers, compare the total — cash plus coverage plus outplacement — not the headline number.

Three mistakes that cost people real money

Signing at the first deadline. The review window is your leverage. Even when an agreement says "sign within X days," asking for more time rarely gets a no, and it costs you nothing.
Negotiating only money. Equity vesting and benefits are often easier for HR to move than base pay. A company that says "we cannot add weeks" will sometimes approve a three-month COBRA subsidy on the spot.
Leaving the reference vague. "We'll say something neutral" means nothing in writing. Ask for a specific commitment: a named person who will take reference calls and a one-line description they will use. That single line can be worth more than the package to your next job search.

Severance negotiation is one of the few conversations where the other side expects you to push back a little, and where the cost of asking is one polite email. Do the math, read the clauses, make a specific written ask, and only then sign. The negotiation notes tool gives you a one-page template to keep your numbers and talking points in one place while you work through it.