Most employers frame retrenchment packages as "take it or leave it". However, this does not mean you have no say. Severance is not the end of the story - it's often the start of a constructive negotiation. 

Companies pay severance, not out of generosity, but as a form of risk management. Retrenchment benefits help reduce the chance of disputes, protect the company's reputation, and ensure a smooth transition. That gives you leverage and some headroom to negotiate.

Here are five practical steps to help you optimise the retrenchment package:

1. Don't sign immediately

It is natural to feel pressured, especially when HR frames the offer as "standard" or gives you a tight deadline. Resist the urge to sign on the spot.

• Ask: "How much time do I have to review this?", or ask for more time. This is granted most of the time. 
• Use that extension window to collect your thoughts, review carefully, and get professional advice if needed. 

Remember: once you sign, your leverage is gone. Taking even a few days can change the outcome significantly.

2. Look beyond salary

Many employees focus only on the lump sum, but severance has multiple moving parts. Review the package holistically:

• Unused leave or accrued vacation pay
• Healthcare insurance coverage or extended medical benefits
• Bonus entitlements (especially pro-rated amounts)
• Stock options or vesting schedules — sometimes negotiable, including requesting an accelerated vest. 
• Outplacement support or retraining subsidies

These add-ons can be just as valuable as the cash payout, and are often easier for employers to grant. 

3. Assess your leverage

Think strategically. If the company is conducting a wider round of layoffs, not following its own policies, or concerned about reputational risk, you may be in a stronger position than you realise. 

4. Ask for more and frame it in their terms

The golden rule: start by asking for more than you expect. This gives you room to compromise while still improving your position.

But don't just ask, explain why it benefits them:

• "In exchange for an extended healthcare insurance until the end of the annual cycle, I’m willing to sign a non-disclosure agreement that protects the company."
• "If you can accelerate my stock vesting, I'll commit to a smooth transition and knowledge transfer."

When you tie your requests to the employer's priorities of confidentiality, stability, smooth exits, you shift the conversation from confrontation to collaboration.

5. Get it in writing

Verbal promises are meaningless if they aren't captured in writing. Always insist that every detail, whether it's cash, benefits, or stocks, is accurately captured in the final agreement before you commit.

Why legal advice matters

An employment expert can uncover hidden leverage, highlight risks you may not spot, and often secure outcomes that far outweigh the legal costs.

If you have been offered a severance package and are unsure how to respond, reach out for confidential advice before you sign. It could mean the difference between leaving money on the table and walking away with the package you deserve.