Severance Agreement Explained: What's Inside and What's Negotiable

Updated April 28, 2026 2 min read

TL;DR

Signing severance trades your right to sue for money. The question is whether you're getting enough.

Payment

1-2 weeks per year of service for non-executives, more for senior roles. Lump sum or salary continuation. Continuation extends benefits and equity vesting — often worth more than the cash difference.

Benefits

COBRA premiums for 1-6 months are common. Confirm dental, vision, and HSA contributions are included.

Release of Claims

You agree not to sue for anything related to employment or termination. The scope matters: employment-related only, or does it extend further?

Reference and Announcement

Negotiate an agreed reference (or neutral: dates, title, eligible for rehire) and approval over how your departure is announced.

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Frequently asked questions

Do I have to sign right away?

No. Use the full review period. The first offer is never the final one.

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