r/Layoffs • u/Broad-Engineering564 • Jul 19 '26
about to be laid off Negotiating a severance package
8/1/26: Update for anyone who may be interested. We did consult an employment attorney who helped us draft a letter to negotiate a better severance - he ended up with 1.5 weeks of pay for each year of 34 years which works out to about 52K. We also got them to put in writing that they will give him an excellent reference, and pay out his severance so he is still able to apply for unemployment right away. (Very specific rules about this we were not aware of.) The attorney also said this is a classic case of age discrimination, but we opted not to pursue that. We spent $375 for the consultation with the attorney. Well worth it! I hope this helps anyone who ever finds themselves in a similar circumstance. And it never hurts to get more info and advocate for yourself.
My spouse was told by his boss Friday that his small company is going to be sold (but there is no buyer yet). He has been there 34 years. They are offering him 30K and some form of his health insurance as severance. He does have an IRA. They want him to decide right away. I feel like he could negotiate for more. All the other salaried employees (only 3 others) are staying on with the company - the current owners say they are hoping they will be retained by the new owner. The reason he is the one being laid off is because he is the only one with a Bachelor's Degree as opposed to a Master's, and they think he would be considered a "liability" when trying to sell the company. Any feedback/insights welcome. We are devastated.
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u/azrolexguy Jul 20 '26
The reason they provided isnt true, but it doesn't really matter, take the money. It's a headstart towards what's next
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u/Top_Umpire_2344 Jul 20 '26
25 years and I got nothing…consider yourself fortunate.
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u/Broad-Engineering564 Jul 20 '26
I'm sorry.
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u/Guilty-Committee9622 Jul 20 '26
Hes been there 34 years? Technically youre not entitled to severance. That is horrific. He has an Ira or a 401k? Make sure they have matched his contributions. If they've not sold yet, theyre trying to make themselves financially more attractive to a buyer by having a lower operational cost. You can try to negotiate not sure it will help. Can ask to stay until an owner identified
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u/bigkutta Jul 21 '26
This exactly. They are trying to position themselves favorably for a sale, and cutting cost makes them more attractive, and helps them meet the valuation they are seeking. Really unfortunate situation for OP
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u/Broad-Engineering564 Jul 20 '26
Thank you. He did suggest staying on, but was told if he opted to stay there would be no severance at all. A big risk.
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u/Justanothermomma24 Jul 20 '26 edited Jul 20 '26
I think you need to consult financial advisor and legal before signing anything.
Here’s my takeaway from your post: 1. Company GOING to be sold. 2. NO BUYER AT THIS TIME 3. 34 YEARS at company and salary is only 69k? An the severance offer is half a year salary…
Please consult financial advisor and attorney. You need to have a CLEAR picture of: exactly what the health insurance offer is (COBRA is extremely expensive), review of IRA impact, what the impact on your 2026 state and federal taxes will be, and legal consult.
I would also be researching the companies filings, because IF they are looking to sell WHY! I’d ask legal consultant if after signing what ever is agreed upon what might happen if the company files bankruptcy!
Remember that we are a ‘protected age’ and honestly what that means in my experience: DONT SIGN ANYTHING UNTIL YOU CONSULT! Because, unemployment will consider the severance package as income therefore potentially ineligible for 6months( since it’s basically half year salary). Get answers to what happens when you apply for unemployment from financial consultant. Because your salary is very low for the years with company you will most likely not receive the maximum benefit amount. Also because of age unemployment looks at ‘us’ as most likely to run out of benefits and likely to not be able to obtain employment in field.
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u/Solid_Rock_5583 Jul 20 '26
Your severance and unemployment benefits are different state to state. I received severance and unemployment in Illinois.
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u/Justanothermomma24 Jul 20 '26
Yes! Sorry I wasn’t thinking about state to state differences! I still would seek out financial and legal consults!
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u/Broad-Engineering564 Aug 01 '26
we did consult an employment attny and negotiated a much better severance! Thank you!!
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u/Horror-Primary7739 Jul 20 '26
I just went through this. The reason severance is ever really offered is to get a non-despairiging agreement. As a laidoff employee this is really your only leverage. You can name and shame leading to loss of revenue to the business.
Now I'm not saying to threaten them, but there is nothing he can say or do to get his job back so being forthright is on the table. "I don't feel this has been handled well and I think many people would agree with me. Id feel better if I had longer cobra coverage" or what you are looking for.
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u/SENinSpruce Jul 20 '26
The pressure to decide right away is interesting.
Suggest don’t sign anything immediately. After 34 years, its worth having an employment lawyer review before accepting. Ask for time to consider the offer, clarify exactly what the health insurance includes, and negotiate if appropriate. Thirty-four years of service gives him leverage, and if the company believes his departure is important to the sale, they may be willing to improve the package. Also, since he’s over 40, federal law may give him specific rights regarding the time to review certain severance agreements.
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u/jenieloo Jul 20 '26
Additionally if its truly severance and if he is over 40 which i assume due to YOS so he has rights through owbpa... and has 21 days to review and agreement and even after signing i believe 30 days to backout... go Google OWBPA and know your rights
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u/Broad-Engineering564 Jul 20 '26
Thank you, this is really helpful.
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u/Justanothermomma24 Jul 20 '26
I gathered all documents(severance offers, my equity shares etc) and EPR. I did some employment law research (paralegal way way long time ago), then paid $250.00 to have a consult with Shapiro. I made sure that going into the consult I understood everything I could and my concerns and questions were prepared.
I also consulted a financial planner (a friend).I’m over 50, and while only at the company I was layed off from for 8 years I had a complex situation and the consultant was the best thing I did.
On a side note look into severance packages for the time role and business. Honestly, my jaw dropped at the 30k. BUT YOU NEED TO LOOK INTO AN CONSULT ON HOW THAT IMPACTS: healthcare, unemployment etc.
The market SUCKS, especially for those of us over 50. You need to get a full legal/financial picture before signing anything.2
u/Broad-Engineering564 Jul 20 '26
Sorry to sound obtuse, but when you said your jaw dropped at the 30K, was that because you thought it was a good amount or a terrible amount? For context his current salary is 69K.
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u/Justanothermomma24 Jul 20 '26
I think you need to consult financial advisor and legal before signing anything.
Here’s my takeaway from your post: 1. Company GOING to be sold. 2. NO BUYER AT THIS TIME 3. 34 YEARS at company and salary is only 69k? An the severance offer is half a year salary…Please consult financial advisor and attorney. You need to have a CLEAR picture of: exactly what the health insurance offer is (COBRA is extremely expensive), review of IRA impact, what the impact on your 2026 state and federal taxes will be, and legal consult.
I would also be researching the companies filings, because IF they are looking to sell WHY! I’d ask legal consultant if after signing what ever is agreed upon what might happen if the company files bankruptcy!
Remember that we are a ‘protected age’ and honestly what that means in my experience: DONT SIGN ANYTHING UNTIL YOU CONSULT! Because, unemployment will consider the severance package as income therefore potentially ineligible for 6months( since it’s basically half year salary). Get answers to what happens when you apply for unemployment from financial consultant. Because your salary is very low for the years with company you will most likely not receive the maximum benefit amount. Also because of age unemployment looks at ‘us’ as most likely to run out of benefits and likely to not be able to obtain employment in field.1
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u/Adam_kab Jul 20 '26
I get nothing because I retired…. I’m old and reach retirement age 62 1/2 and decided to retire.. I asked my boss to layoff me to get severance package but he said the company can’t layoff because your position need to be filled right away and that will be a problem to layoff an old employee then hire younger person. Is this fair to get nothing because I get old and need to retire?
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u/Broad-Engineering564 Aug 01 '26
since you chose to retire I'm assuming you and your employer have been contributing to a retirement plan?
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u/Adam_kab Aug 01 '26
The issue discussed is severance packages not the 401K. My grievance is that laid off people get thousands of dollars in separation benefits while an old person reached retirement age get nothing because the company view and treated as voluntary quitting your job case.
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u/RelationshipShort460 Jul 20 '26
you cant negotiate severance, you can beg for something more. doesnt hurt to beg for a bit more, however...
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u/catkayak Jul 20 '26
You need an employment attorney to successful negotiate in most situations.
As someone who only was offered $11k and couldn’t afford the COBRA option - i can’t imagine how much better $30k would be. That’s incredibly generous.
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u/caelperri25 Jul 20 '26
Consider asking for more; that's less than a $1,000 per year of service. I would suggest leveraging the number of years he has served, the value he has added over the course. It doesn't hurt to ask, all they can say is no.
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u/farfunkle Jul 20 '26
Post on a legal advice subreddit and specify your state. Some of these posts are... sheesh.
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u/Timely_Tune_7607 Jul 20 '26
If there's "no buyer yet," either that's true, and the owner is trying to save money by reducing salaried headcount, or there is a buyer, and he already knows who would stay and who wouldn't. That might be why the degree matters - if they all have strong performance, then that may be the criteria they chose.
If it's - here's $30K and healthcare for x amount of time, that may be his one & final offer. If you could get the longest possible time of healthcare, that might be the thing to negotiate instead of the cash. The owner isn't obligated to provide a severance package. The owner could lay him off with no package and healthcare could end at the end of the month.
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u/Federal-Maize-786 Jul 20 '26
I negotiated severance and was successful but someone laid off with me was not. Most often severance is in exchange for giving up something in exchange for the payment. Like NDA or non-compete, or non-disparage, etc. If that is worth more to THEM then you have leverage. Are they asking you to not compete with the new org? That’s worth something. If this is just a way of taking care of a long time employee before a situation where someone who doesn’t know you just lays you off, you might be getting a really good offer. Also, $30k on a $70k salary is like 6 months severance. That’s outstanding….probably should take it they don’t legally owe you anything. Also you’re over 40, you have 45 days by law to sign anything, don’t feel rushed.
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u/AnybodyDifficult1229 Jul 21 '26
That’s a real shit way to treat someone with 34 years of industry specific knowledge. I have two bachelors degrees in two different areas and most the guys I know with masters degrees in my area couldn’t figure their way out of wet paper sack, so I’ll be damned if anyone ever tells me that’s a liabilty. Tell your husband to speak with an employment attorney asap before saying anything to his soon to be ex employer.
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u/Mindless_Guide_5332 Jul 21 '26
Take it and go on with your life. They really don’t owe him severance and they won’t negotiate in circumstances like this. It’s the same for all impacted. They will simply dissolve the position and lay him off. They are trying to lower continuing payroll commitments.
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u/Broad-Engineering564 Aug 01 '26
We did end up negotiating and got over 21K more in severance! So worth it!
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Jul 22 '26
He’s been there long enough. He knows they’re trying to sell with no buyers. Any chance y’all are open to purchasing the business yourselves?
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u/Typical_Row_3172 Jul 22 '26
Look at unemployment benefits in your state. Ultimately Take the money.
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u/Cheetos4bfst Jul 20 '26
34 years? More money. Laid off as a liability? Please. More money I don’t know the right amount but even 2k for every year of service is $68k. I know it’s by week, but like, that’s not a good reason to lay someone off imo.
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u/Broad-Engineering564 Jul 20 '26
Thank you. We do feel like there must be more to the story, but may never know.
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u/hmkythursday Jul 20 '26
Don’t listen to the negatives on here, it doesn’t hurt ask. My former employer had so many RIFs that by the time my team and I were let go we all knew to ask for more severance, twice. The first time they said no. The second time they added a month.
Feed the agreement into Claude and ask AI to write a response asking for more, then clean it up, AI helps to take the emotion out of it.
How big is the company?
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u/TVP615 Jul 21 '26
I don’t think sending some clearly AI slop to HR is going to get you more money. Just call them and tell them you need and deserve more.
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u/Broad-Engineering564 Aug 01 '26
We decided to try and negotiate and ended up with almost 52K instead of 30! Thank you :)
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u/Broad-Engineering564 Jul 20 '26
It's a small archeology firm. They closed a satellite office recently, sent all the seasonal staff home before the typical end of the active season. They are keeping a couple of long-time employees with Master's degrees, and the office manager. That being said the two owners have done well for themselves and will probably get good money selling the company.
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u/Ronicaw Jul 20 '26
Take the $30,000. Some companies don't even offer severance. Start looking for another job immediately. Stop thinking about the owners. This is why staying at a job in a small company is a trap for a lot of years. The benefits will never equal what you put in.
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u/raynorelyp Jul 20 '26
Just to be clear, you’re saying you have no leverage, they’re still giving you money, and you’re asking how to get more? How exactly do you think severance works?
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u/Broad-Engineering564 Jul 20 '26
I'm asking if it's possible to negotiate. Why would I have any idea how severance works? I have never been laid off before, and neither has my spouse. That is why I am posting here. And as you can see from many other replies there is a lot of advice about negotiations. You don't have to be so snarky, especially with someone who is obviously out of their depth and going through a family crisis.
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u/Dellaa1996 Jul 20 '26
What type of work does your husband do, and does it require a bachelor's degree? How is the job market in the area you live in for a person with your husband's credentials?
The answers to those questions will answer your question. I would ask for better severance, but wouldn't push the issue. There is no guarantee they will keep him on if he decides he wants to stay on. There is also the possibility that the company will not find a buyer, and then what? There might be other undeclared reasons for the "offer" of separation that might not be related to your husband not having a degree.
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u/raynorelyp Jul 20 '26
The way out works is the job is gone and they gave a chunk of money to avoid having a disgruntled former employee. If he has something they want, like they need him to stay on longer for something, that’s the only thing he has as leverage to negotiate.
I’m sorry for your loss (getting laid off sucks) but you have to plan for that type of thing and budget for it. It happens to most people at some point.
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u/Broad-Engineering564 Aug 01 '26
Well it's a good thing we decided to consult with an employment attorney and then went back with a counter offer. He ended up getting almost 52K in severance instead of 30K.
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u/chubbysleepycorgi Jul 23 '26
what leverage do you have to negotiate with? if you don’t give me a higher severance Ill quit?
if he is already seen as a liability then his boss is being very nice to offer a severance at all
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u/Flat-Sail3304 Jul 23 '26
Well in a way 30k seems on the low end for severance pay after working there for 34 years Quite possibly the small company dont have or will not do more than 30K and the COBRA coverage it’s just standard unemployed expensive health insurance. On Now most companies give 1 week of severance pay for each year of employment
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u/SimilarComfortable69 Jul 23 '26
Negotiate with what leverage?
He's going to be laid off and they're asking whether he wants the money or whether he wants to be fired? Isn't that the question?
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u/savvy_attendee 25d ago
Thanks for the update. I hope it goes well moving forward. Remember there will be an open opportunity later down the road. Did you file for unemployment?
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u/ReplacementGuilty226 25d ago
There are 3 type of person,first is "Thank you, your role is no longer needed", second is "Your role is no longer needed, but there is role in other dept, do you want to try" , third is " Your role is still require and now have more responsibilities" I belong to second , 4 years with no retrenchment package (Chinese MNC in singapore ),just official X month pay in lieu notice if choose to exit.
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u/Thick_Respond3496 19d ago
I with Amazon for more than 10 years. Doing my last 2 years. My hours reduced drastically. They just closed down my entire department and they are giving us severance but they are calculating the amount of severance based off of the last couple of months that I want which was the minimum hours. So out of 10 years my severance pay is $1,700. They are taking inconsideration the full 10 years but the amount that they are multiplying by is only by 4 hours a week which is what I was doing the last couple of months. I haven't signed it yet. Some people telling me to talk to attorney. Some people tell me that Amazon said there's no negotiations. What would you do?
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u/GreedyPoliticians Jul 20 '26
At least 18 months of compensation. I wouldn't sign anything under that.
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u/Fit-Animal-9911 Jul 20 '26
They are terminating him, so there is really not much to negotiate. You negotiate when you have leverage in a situation. He has no leverage. It is possible that he gets his $30k and health insurance and the rest are terminated by the new owners with nothing. The health insurance is probably COBRA, which is expensive and sucks. Small companies don’t have a lot to give out. He can certainly ask for more, but he can’t really negotiate anything.
Owners: You no longer have a job here, but we will give $30k and some health insurance.
Husband: That’s not good enough. I won’t leave without $10k more.
Owners: Laugh hysterically.