When starting a new job, most employees focus on negotiating their salary, benefits and job responsibilities. As a result, if you’ve been offered a brand new job, severance may be the last thing on your mind. However, negotiating severance terms during the hiring process can offer important protection if your new job ends unexpectedly.
Severance agreements typically outline what an employee will receive if their position is eliminated or if they are let go without cause. These terms can include compensation, continuation of benefits, job references and even non-disparagement clauses. If you wait until the end of your employment to address these issues, your leverage may be limited. Employers are often less willing to negotiate generous terms once the decision to terminate employment has been made.
By raising severance terms at the outset, you’ll signal that you are thinking strategically and professionally. It can also allow you to build a more balanced agreement that reflects the risks and responsibilities on both sides. For example, if your role involves relocation, giving up freelance work, or walking away from another offer, you may reasonably ask for severance protection in the event the job ends prematurely.
Making the leap
Negotiating severance does not mean you expect the worst. It is a proactive step that can benefit both you and your employer. It offers transparency and reduces the risk of disputes down the line. In some industries—especially those where restructuring is common—it is simply standard practice for experienced professionals to request such protections.
In California, severance is not required by law unless it is part of an employment contract or company policy. This makes it even more important to negotiate favorable terms in writing proactively. Your future self may thank you profusely for working with a skilled legal team to draft favorable severance terms sooner rather than later.
