Question 1

Is my employer required to offer severance?

Accepted Answer

Generally no, unless a contract, policy or union agreement requires it, or in some mass-layoff situations.

Question 2

Can I collect unemployment if I take severance?

Accepted Answer

Often yes, though some states delay or reduce benefits while severance is paid. Report it honestly.

Question 3

Should I sign my severance agreement right away?

Accepted Answer

No. Take time to read it carefully, and consider having an employment lawyer review it, especially if a lot is at stake.

Question 4

Can I negotiate a severance package?

Accepted Answer

Often yes. Polite requests for more pay, health coverage help, a reference or outplacement help are common. Get changes in writing.

Question 5

What is a release of claims?

Accepted Answer

The part of a severance agreement where you give up the right to sue your employer over your job or its ending, in exchange for the severance.

Question 6

How long do I have to sign a severance agreement?

Accepted Answer

It depends. If you’re 40 or older, federal law generally gives at least 21 days (45 in group layoffs) plus 7 days to revoke. Others should ask for reasonable time.

Question 7

Does severance affect unemployment benefits?

Accepted Answer

In some states it can delay or reduce benefits. Report it when you apply.

Question 8

What is the WARN Act?

Accepted Answer

A federal law requiring many larger employers to give 60 days’ notice before mass layoffs or plant closings, or pay in place of notice.

Common questions: Severance offer