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Ask HN: How to negotiate severance?

9 points by czep ↗ HN
During layoffs a colleague negotiated 6 months, when the usual package was just 1 month. How is this possible? You basically have no leverage except to threaten a lawsuit, and surely they don't think you would win if they are laying off for cost cutting reasons. So aren't severance agreements basically take it or leave it?

8 comments

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nness
Depending on your position in the company, an employee may still have leverage in their technical experience or client relationships. I imagine such an employee may sign a non-compete that explicitly prevents forming or joining a competitor or professionally engaging or joining a client.

Chances are though, these terms are already part of their original employment agreement in some way (as allowed by the relevant laws in the state). That said, non-competes are court-tested and the business may not be interested in expelling more resources to prevent competition when they could just make a new contract not tied to their employment.

The so-called "Gardening Period."

pavornyoh
What was his level at the company? That will help answer your question / be your answer there. It is often in the contract before you are hired.
Blackthorn
I'm not saying that this is how he or she did it, but you don't necessarily require leverage to negotiate well. Being charismatic and having people like you can often be as good or better than leverage, depending on the situation.
seiji
Re-watch Fight Club and American Beauty for tips on negotiating competent severance packages.
czep
Thank you. At the very least this helps put things in perspective ;)
zhte415
In addition to earlier suggestions, it could have been negotiated into the contract at the start, especially as doing it when hired appears 'costless' the the company at that time, especially when well worded "If the company decide to downsize for reason XX out of Party B's control or control of their direct manager, ..., etc".
debacle
> You basically have no leverage except to threaten a lawsuit

This is very untrue. You could agree to sign a non-compete or NDA after the fact, agree to be on retainer for consulting, or agree not to quit on the spot.