When employment comes to an end, whether unexpectedly or as part of a planned transition, many employees are presented with a severance agreement. While this can offer a much-needed financial cushion, it’s essential to understand that severance contracts are negotiable—and that the terms you accept can impact your professional future.
At Cramer Law, we regularly help employees navigate severance agreements to ensure their rights are protected and their interests are prioritized. Here are a few key tips from Attorney Amy Cramer on how to negotiate a severance contract effectively.
1. Understand the Terms You’ve Been Offered
Before you begin negotiating, it’s crucial to fully understand the severance package on the table. What compensation is being offered? For how long? Are benefits included? Is there a deadline to respond? These are all important details that can help guide your next steps.
Don’t just focus on the dollar amount—pay close attention to what you’re giving up in exchange for accepting the offer.
2. Know What Else You’ve Signed
Your severance agreement doesn’t exist in a vacuum. Often, it’s tied to other agreements you may have signed during your employment, such as:
- Confidentiality agreements
- Non-compete clauses
- Non-solicitation provisions
These previous documents can directly affect the terms of your severance and your post-employment opportunities. For example, a non-compete clause could limit where you can work next, even after accepting severance pay.
Before agreeing to anything, review all existing agreements to see how they intersect with your severance contract.
3. You Can—and Should—Negotiate
Many employees assume that severance terms are set in stone. In reality, employers often expect some negotiation. You may be able to:
- Increase the amount or duration of severance pay
- Extend healthcare benefits
- Clarify or remove restrictive clauses
- Adjust the terms of non-disparagement or reference language
Each situation is unique, and what’s negotiable will depend on the employer, your position, and the circumstances of your departure. Having an experienced employment attorney can make all the difference in securing a more favorable outcome.
Final Thoughts
Severance agreements are legally binding contracts that can have long-term implications. Before you sign anything, it’s worth taking the time to review the terms carefully and consult with an attorney who understands the nuances of employment law.
At Cramer Law, we’re here to help you navigate this process with confidence—ensuring your next step is on solid ground.
Have questions about a severance agreement?
Contact Cramer Law today to schedule a consultation and protect your rights before signing.
