What factors should you consider when negotiating severance and exit clauses?

1 Your legal rights

Depending on your contract, employment status, and the reason for your departure, you may have certain legal rights and obligations that affect your severance and exit clauses. For example, you may be entitled to a minimum notice period, a severance payment, or a reference letter. You may also have to comply with certain confidentiality, non-compete, or non-solicitation clauses. You should consult a lawyer or an employment expert to understand your legal rights and avoid any potential disputes or lawsuits.

2 Your employer's interests

Your employer may have different interests and motivations for offering or negotiating severance and exit clauses. For example, they may want to avoid litigation, protect their intellectual property, maintain a good reputation, or save costs. You should try to understand your employer's interests and use them as leverage or bargaining chips in your negotiation. For example, you may offer to sign a release of claims in exchange for a higher severance payment, or agree to a shorter notice period in exchange for a positive reference.

4 Your alternatives and risks

Another factor that you should consider when negotiating severance and exit clauses is your alternatives and risks. For example, you may have another job offer, a business opportunity, or a personal project that you want to pursue. You should weigh the pros and cons of these alternatives and how they affect your negotiation. For example, you may be more confident and assertive if you have a backup plan, or more cautious and cooperative if you don't. You should also assess the risks of accepting or rejecting your employer's offer, such as losing your income, benefits, or references.

5 Your relationship and communication

The last factor that you should consider when negotiating severance and exit clauses is your relationship and communication with your employer. Your relationship and communication can influence the tone, style, and outcome of your negotiation. For example, you may have a positive, respectful, and trusting relationship that facilitates a smooth and fair negotiation, or a negative, hostile, and distrustful relationship that creates a tense and difficult negotiation. You should try to maintain a professional and courteous communication with your employer, regardless of your relationship. You should also avoid emotional reactions, personal attacks, or ultimatums that may damage your negotiation.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?