Severance Pay: 

Understanding your rights to severance pay and how to advocate for yourself can ease the transition between jobs and protect your financial stability. If the idea of obtaining a severance package as a result of a layoff is unfamiliar, you’re not alone. Many professionals don’t realize they may be eligible or how to negotiate favorable terms. Here’s what you need to know.

What Is a Severance Package?

Severance pay is compensation provided by an employer when an employment relationship ends. Usually it is most commonly due to layoffs, workforce reductions, although it can be due to a mutual agreement. While usually given as a lump sum or continuation of salary for a set period, severance may also include extended health benefits, job placement assistance, or other perks to support your transition.

The amount of severance pay can be outlined in your employment contract or determined by factors such as:

• • Length of service

  • Position or hierarchy within the organization

  • Company policy or practice

  • Circumstances surrounding your departure

Remember, unless severance terms are specified in your contract, details are generally negotiable.

Am I Eligible for Severance?

Severance pay eligibility depends on various elements:

• • Many employers offer severance pay to W-2 employees impacted by company-wide layoffs, particularly when proper notice is not provided as required by the WARN Act (for larger layoffs).

  • Employees who retire early, accept voluntary separation packages, or have contracts explicitly promising severance may also qualify.

  • Typically, employees terminated “for cause” (such as for serious policy violations) are not eligible for a severance package.

  • Some companies choose to offer severance even if not required, aiming to foster goodwill or minimize the risk of legal claims after employment ends.

If you’re unsure about your eligibility or believe an employer is limiting your legal rights in exchange for severance pay, consult with a qualified attorney before signing any agreement.

How to Ask for Severance Pay

Approaching the conversation about severance pay can feel daunting, but preparation is key. Follow these steps:

• • Review your employment contract and company policies to identify any severance-related provisions.

  • Document your contributions and tenure to strengthen your case for a fair severance package.

  • Initiate a calm, professional conversation with HR or your manager. It is best to do this in writing or during a scheduled meeting.

  • Ask directly: “Is the company offering severance as part of this separation process?” Express appreciation for your time at the company, and state your interest in an amicable transition.

  • Negotiate terms: If an offer is made, don’t accept immediately. Review the package carefully. Consider asking for an increased payout, continued benefits, or extended support based on your experience and the circumstances.

  • Get any agreements in writing, and avoid signing before you fully understand the terms.

Remaining professional and open while advocating for yourself is essential. Most employers expect severance discussions—handling them professionally won’t burn bridges.

Finding an Attorney for Severance Pay Issues

If you encounter complex severance pay terms or feel pressured to sign away important rights, legal counsel can help. Look for attorneys who:

• • Specialize in employment law or severance negotiations.

  • Offer transparent consultation fees and references.

  • Have experience representing employees in your industry.

Start your search with reputable legal directories or state bar associations. Consulting an expert ensures your severance agreement protects your interests now and in the long term.

Final Thoughts

If you believe you qualify for severance pay, don’t hesitate to ask. Many companies plan for this cost but only provide severance pay to those who request it. Understanding your options can turn a challenging moment into a bridge to your next role.

Have questions or need guidance? Reach out to our team—we are here to support you.