Severance Package Negotiation Sample Letter & Guide

When negotiating a severance package, it’s not just the amount of money offered that matters – it’s also the additional benefits. A well-crafted letter can help you get your request without appearing unreasonable or aggressive.

When putting together a successful severance package proposal, knowing your rights and convincingly explaining them is important. This is true whether you were fired after a long time on the job or laid off because the company was restructuring.

In this blog post, we discuss how to write a letter for negotiating your severance compensation that achieves your goals and satisfies all parties.

What is a Severance Package?

A severance package is a set of benefits and compensation offered to employees when they are laid off or leave their job. It can include pay, health insurance coverage, outplacement services, and other forms of assistance. The package amount depends on the company’s policies and the length of time the employee has been with the organization.

Severance packages are typically negotiated between employers and employees. Employers may offer a standard package that includes certain benefits, but employees may be able to negotiate for more depending on their circumstances.

What to Include in a Severance Package Negotiation Letter

When writing a severance package negotiation letter, several important elements must be included. It’s essential to be clear and concise in your request while also showing appreciation for your time with the company.

Here are some key things to include:

Acknowledgment of termination or layoff

Thank the employer for your time, and explain why a mutually beneficial agreement benefits both parties.

Your rights

Outline any legal entitlements that you may have. This includes anything from accrued vacation days to health insurance coverage.

Desired outcomes

Be clear about what benefits you are requesting and why. Make sure to be realistic in your expectations and provide evidence of how these requests would benefit the company.

Back-up plans

It’s helpful to provide a back-up plan if the employer is unable or unwilling to meet your request. This shows that you are open to compromise, enabling both parties to come away with something positive.

Photo by Amy Hirschi on Unsplash

Tips for Writing a Severance Package Negotiation Letter

There are no hard and fast rules when writing a letter for negotiating your severance package. Here are some tips that can help improve your chances of success:

Know your rights

Make sure to familiarize yourself with any legal entitlements you may have before drafting the letter. This will ensure that you get the most out of the negotiation process.

Do your research

Gather evidence to support your requests and understand how they may benefit the company. This could include performance reviews, salary surveys, or industry standards.

Present alternatives

Show that you are open to compromise by providing a back-up plan if the employer is unable or unwilling to meet your request.

Be polite

While it’s important to be firm in your requests, it’s also essential to maintain a professional and courteous tone throughout the letter.

Provide contact information

Ensure you include your contact details so that any further negotiation can occur quickly and efficiently.

Proofread and edit

Double-check your letter for spelling, grammar, or factual errors before sending it.

Following these tips will help you get the most out of the severance package negotiation process. Remember to stay calm and confident throughout the process, and don’t be afraid to ask questions or seek advice if needed.

Severance Package Negotiation Sample Letter

Here is a suggested template for writing a severance package negotiation letter. Remember to customize the content according to your circumstances and desired outcomes.

Dear {Employer Name},

I am writing regarding my recent termination from {Company Name}. I appreciate the opportunity I was given during my time with the company, and I am grateful for your professionalism throughout the process.

Per my legal entitlements, I request {outline any benefits or compensation you are requesting}. Given the current circumstances, I recognize that this may be difficult to accommodate. Therefore I am open to exploring alternatives like {list any back-up plans you are available to} to reach a mutually beneficial arrangement.

I look forward to discussing this further and reaching a satisfactory outcome. Please get in touch with me at your earliest convenience to discuss the details.

Thank you for your time,

{Your Name}

{Your Contact Information}


With a severance package negotiation sample letter like the one above, your chances of success can significantly improve.

It’s essential to know your rights and consider any legal entitlements that you may have to get the most out of the negotiation process. Gather evidence to support your requests, present realistic alternatives, and maintain a polite and professional tone throughout.

With these tips, you should find the negotiation process smoother and more productive.

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

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