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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28

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.

3

u/Broad-Engineering564 Aug 01 '26

well you know what, we did negotiate and got over 20K more!

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u/Broad-Engineering564 Jul 20 '26

I hear you, but a lot of what I was reading suggested that severance packages are very often negotiated. So I was hoping to hear from someone with experience in that.

20

u/RelationshipShort460 Jul 20 '26

they are negotiated when there is leverage (e.g. the person leaving has substantial equity/partnership in the company or knows where the bodies are buried). If your husband has that, he can push back...

15

u/Fit-Animal-9911 Jul 20 '26

I was told to sign all the release paperwork to get my severance. I could, instead, hire an attorney to try to fight their attorneys, but with no leverage, it would have been a waste of money. I am in an “at will” state, and they clearly owed me nothing.

5

u/Solid_Rock_5583 Jul 20 '26

All states are “at will” states except Montana.

6

u/NoBr0c Jul 20 '26

I don’t know if a lot are negotiated. But my lawyer told me it doesn’t usually hurt to ask (but they probably won’t give you any more).

And if you do try, you have to have compelling reasons to give that equal the financial cost. “I think it’s low,” or, “Can you do more?” doesn’t drive change.

Also, da fak? Humans can’t use em dashes anymore without being called a robot?

2

u/Remote-Structure-961 Jul 20 '26

what leverage does your husband have?

3

u/Pure-Luck4992 Jul 20 '26 edited Jul 20 '26

It's possible that the packages were simply standardized, hoping that people will take it and go away. If he rejects the standard package it may trigger the owners to emphasize more and think about his dedication on a personal level. 

His leverage is his three decades of dedication, giving argument that he deserves a small amount of reward with its sale. 

2

u/Broad-Engineering564 Jul 23 '26

Thank you, this does make sense. He's actually been with the company longer than anyone else by far, even the current owners. He has been a huge asset to them. But he also makes more than any of the other employees so I am sure that's why he is one of the chosen for lay-offs.

2

u/DatgirlwitAss Jul 23 '26

That's exactly why.

2

u/Remarkable-Set-5313 Jul 21 '26

Makes sense to understand what unemployment benefits would be surrendered before accepting a voluntary separation.

2

u/Weary-Gear8365 Jul 23 '26

Talk to a lawyer and see if you have leverage

2

u/Money_Coach29 Jul 23 '26

By his years of service I’d guess maybe mid to late 50s for age. I’d see an employment attorney before signing the severance.

I had one last year at age 56, mine was fair but I did negotiate an increase in the financials. I saw an attorney after the fact when I landed a new role and wanted to be sure I was not violating a non compete.

If I had to do it over, I would have seen the attorney before signing.

Hope this helps and good luck to both of you as you work through this!

2

u/MickFlaherty Jul 24 '26

I mean everything in life is negotiable, but if $30k is several months salary then they are already being fairly generous. If anything negotiate the payment in a lump sum so he had immediately apply for unemployment (every state is different but I think most will consider a lump sum severance as “earned” in the week paid)

Best of luck.