Ep 61: The Truth About Severance Packages

Layoffs are happening. Are you ready?

This week, Mandy & Mandy get into one of the most important, and most overlooked, conversations in your career: how to negotiate your severance package. Most people sign whatever is handed to them in that emotionally charged moment. Turns out? That's exactly what they're counting on.

We break down:

Why you should never sign your severance package on the spot

What's actually on the table (hint: it's not just cash — think insurance, equity, laptops, and more)

How to approach the negotiation based on your personality type, even if you hate conflict

Red flags that mean it's time to lawyer up

Why quitting before you get fired might be costing you thousands

The NDA situation you didn't know could work against you

As always, zero judgment, full chaos, real talk.

Submit your anonymous severance story at  ⁠https://www.thecorporateburnouts.com/secrets⁠ and don't forget to share with a friend and leave a review!

FAQs

1. Should you sign your severance package right away when it's offered?

No. Mandy Alt and Mandy Holt are clear on this: you should never sign your severance package on the spot. Companies present severance agreements in emotionally charged moments precisely because they know most people will sign without question. Taking time to review what's being offered, understanding what you may be waiving, and consulting a professional if needed can make a significant difference in what you ultimately walk away with.

2. What can you actually negotiate in a severance package beyond the cash payout?

In this episode, Mandy and Mandy break down the full picture of what may be on the table during severance negotiations. Beyond the base cash amount, they explain that employees can often negotiate health insurance continuation, vesting of equity or stock options, the ability to keep company equipment like laptops, outplacement services, and the specific terms of any non-disclosure agreement. Most people leave significant value behind simply because they didn't know to ask.

3. Why could quitting before you get fired cost you thousands of dollars?

Mandy Alt and Mandy Holt explain that employees who resign voluntarily typically forfeit their right to a severance package and, in most cases, unemployment benefits as well. If you sense a layoff is coming, staying until the company officially lets you go puts you in a much stronger financial position. Quitting first may feel like taking control of the situation, but it often means walking away from money and protections you would otherwise be entitled to.

4. When should you get a lawyer involved in your severance negotiation?

According to Mandy and Mandy, there are specific red flags that signal it's time to bring in an employment attorney before signing anything. These include overly broad or restrictive NDA language that could limit your future career options, non-compete clauses, situations involving potential discrimination or retaliation, and any agreement that feels rushed or pressured. They emphasize that NDAs in particular can work against you in ways that aren't immediately obvious, making legal review especially important when those terms are involved.