- - Avoid the No. 1 Post-Layoff Mistake — Plus Expert Tips To Negotiate Better

Peter BurnsDecember 30, 2025 at 4:53 AM

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Getting laid off can be a traumatic experience, especially if it’s unexpected. With racing thoughts and an unpredictable future looming, you may find it difficult to process what’s happening.

Companies often take advantage of this, presenting release forms and severance packages immediately after the news to wrap things up. Instead of signing on the dotted line and accepting their initial offer, try these strategies to guarantee you leave the position with the best possible outcome.

Don’t Sign Anything Right Away

After the company shocks you with the information that you’re going to be unemployed, they need you to sign a severance agreement to finalize the layoff. Many make the huge mistake of assuming they don’t have any choice but to agree to the terms. However, this is when you have the most leverage.

Severance agreements offer severance pay and other benefits to an employee in exchange for specific terms. Signing an agreement often means you’re giving up the right to sue or speak negatively about the employer, releasing the terms of service and restricting yourself from contacting or working for competitors. When you receive a severance package offer, you have the right to take time to review it and negotiate the offer.

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Read Your Original Contract

Your original employment contract has a lot of detailed terms that you should review before considering any type of severance agreement. Reread it with a focus on clauses that relate to your benefits, severance and restrictions. Once you know what you’ve already legally agreed to, you can better determine what you’re able to negotiate.

Review the Severance Agreement

Once you know the agreements in your original contract, review the severance agreement and make sure you understand exactly the terms the company is asking for. Keep in mind that most companies have some flexibility for negotiation. Determine what leverage you may have from your work experience, such as strong past performance or legal risks to the employer. After you have a deep understanding of what’s in the agreement and what advantages you have, you can decide what you want.

Decide What’s Important

Since you’ll soon be unemployed, it’s vital to take stock of your short- and long-term future before making demands. If you have leads or a network that could lead to another position quickly, your negotiations may ask for a larger lump sum payment. However, if you believe it may be challenging to find a new role, you may want to focus on getting prolonged healthcare benefits. Other things you could include in your negotiations are job placement support, an additional payout for unused vacation or the removal of a non-compete clause.

Consult a Professional

Consulting an employment lawyer can be advantageous if you’re not sure you understand clauses in the severance agreement or if you have questions about your rights. Likewise, financial advisors can offer help in understanding how the packages will affect your taxable income.

Present a Counteroffer

When you meet with human resources again, make sure you clearly explain the changes you want made to the package and how it benefits both sides. If you’re able to come to an agreement, get all of the final terms in writing for legal protection.

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