Severance negotiation letter template

Introduction

When negotiating a severance package, it’s crucial to approach the matter professionally and clearly. A well-structured severance negotiation letter can ensure both parties understand the terms and avoid any misunderstandings. Below is a template you can adapt to your situation.

Severance Negotiation Letter Template

Dear [Employer’s Name],

I hope this message finds you well. I am writing to discuss the terms of my severance package. As we move forward with the transition, I want to ensure that we come to an agreement that is fair and mutually beneficial. Please find below the points I would like to address in regard to my severance:

• Severance Pay: I request a severance pay equivalent to [X] weeks/months of salary based on my [X] years of service with the company.
• Health Benefits: I would like confirmation that my health benefits will remain active for a period of [X] months after my departure or be extended through COBRA coverage.
• Unused Paid Time Off: I request payment for any unused vacation or sick days accrued during my employment.
• Outplacement Services: If possible, I would appreciate assistance in securing outplacement services to help with my job search.
• Non-Compete Clause: I would like to discuss the duration and geographic scope of any non-compete agreements currently in place.
• Reference Letter: I would appreciate a positive reference letter that reflects my contributions during my time with the company.

I believe these terms are reasonable considering my tenure and contributions to the company. I am open to discussing any adjustments and hope we can come to a prompt and fair resolution. Please let me know a convenient time to discuss further.

Thank you for your attention to this matter. I look forward to hearing from you.

Best regards,

[Your Name]

[Your Position]

Final Notes

Remember, the goal is to remain professional and constructive throughout the negotiation process. Tailor the letter to reflect your situation, and be prepared to engage in further discussion if necessary. Clear communication will lead to a smoother negotiation and help secure a fair severance agreement.

Severance Negotiation Letter Template
Key Elements to Include in Your Severance Letter
How to Tailor Your Letter to Company Policy
Effective Language and Tone for Negotiating Terms
Negotiating for Additional Benefits Beyond Pay
Handling Potential Pushback: Responding to a Rejected Offer
Legal Considerations and Risks When Writing the Letter

Begin with a clear and concise opening that addresses the reason for your letter. State your intent to negotiate the terms of your severance package. Be specific about the changes you seek, whether it’s regarding the severance pay amount, benefits, or any other aspects of your departure.

Include key elements like your position, duration of employment, and any notable contributions you’ve made during your time with the company. Clearly outline the severance terms you’re requesting, such as extended pay, continued health insurance, or additional financial support. Refer to the company’s policy or precedents to back up your requests where applicable.

Tailor your letter to align with the company’s established policies and your specific circumstances. This approach shows you’ve done your homework and are making reasonable requests. Referencing company norms or similar cases strengthens your position while remaining within the company’s guidelines.

Use professional, neutral language that maintains a collaborative tone. Avoid aggressive or confrontational language. Instead, express your desire for a fair and mutually beneficial arrangement. Phrasing such as, “I believe an adjustment to the severance terms would better reflect my contributions and the value I’ve provided,” is effective and constructive.

While negotiating primarily for severance pay, consider other potential benefits. You can request additional perks like outplacement services, job search assistance, or an extended healthcare coverage period. These benefits add value and can often be negotiated if you approach the discussion thoughtfully.

If your initial request is rejected, respond politely but firmly. Reaffirm your appreciation for the offer while requesting a reconsideration or suggesting alternative solutions. You can say, “I understand your position, but I’d like to explore potential adjustments that might work better for both sides.” Stay open to negotiation and remain flexible with your requests.

Before sending your letter, be aware of any legal considerations. Ensure your requests are in line with local labor laws and company policies. Be cautious of risks related to legal precedents in your industry or company’s history. Consulting with an employment attorney may provide additional insights to protect your interests during the negotiation process.