Should I Negotiate My Severance Package? (Yes -- and here's why)

You’ve just been let go and handed a severance package. It might feel final—like this is your only option and you have to take it. But here’s the truth: you do not have to accept your employer’s offer in your termination letter. In fact, you probably should try to negotiate your package.

Most offers set out in a termination letter are merely first offers. Here's how you can (and probably should) try to negotiate your severance package.

Should I Negotiate My Severance Package?

Yes, it's usually a good idea to try to negotiate your package. Why?

• Termination offers are usually low

• Termination offers are usually first offers

• You could be leaving money on the table if you don't negotiate

• Your realistic worst case scenario is that your employer declines your proposed counter-offer. To read more about this, check out our article: Can My Employer Rescind My Severance Offer If I Try to Negotiate?

  
  

Termination Offers Are Usually Low

Employers know that most people won’t negotiate. They also know that many terminated employees are stressed, anxious, or eager to move on—making them more likely to sign right away.

That’s why initial severance offers often:

• Provide slightly more than your minimums under employment standards legislation, but still less than your common law reasonable notice entitlements

• Leave out bonuses, commissions, or benefits

• Include a tight deadline

• Contain a release clause that waives your right to ask for more later

You Have the Right to Negotiate

Depending on your case and your employment contract, you may be entitled to reasonable notice or pay in lieu under common law, which is often much higher than your statutory minimums under employment standards legislation.

For example: After 10 years of service, legislation may entitle you to 8 weeks—but common law could entitle you to 10+ months.

What Happens If You Don’t Sign?

Not signing the first offer doesn’t mean you lose your severance. You can:

• Ask questions

• Make a counteroffer

• Request time to review

• Get tools and guidance (like SeverEase) to help you respond

How SeverEase Helps

You don’t always need to hire a lawyer to negotiate a better severance package. SeverEase equips you with:

• Plain-language severance guides

• Lawyer-guided video modules that emulate a legal consultation

• Templates to make counteroffers

• Confidence to respond

  
  

Conclusion

The first offer isn’t always your best offer. It’s a starting point—and you have the right to ask for more. Don’t sign away your future for less than you’re owed.

At SeverEase, we give you the knowledge and tools to negotiate severance on your terms.

Think your offer is too low? Learn how to counter with confidence. Get started with SeverEase today.

Disclaimer: This article is for informational purposes only and does not constitute legal advice.