Should I take a severance package or stick it out at a toxic job with little work?

Getting laid off from a job can be both frustrating and scary. Suddenly, you’re scrambling to pay your bills. And unless you have a solid emergency fund, you may be looking at serious debt until you’re employed again.

But losing a job can be easier when you’re offered the option to take a voluntary layoff. Usually, this comes with some type of severance package, which buys you the freedom to figure out your next move while you get paid.

In this Reddit post, we have an employee wondering if they should take a 12-week severance package. They’re hesitant because that severance comes with an agreement they have to sign. But based on their circumstances, I think taking the severance and moving on is the way to go.

When you’re paid to explore your options

It’s not always an easy thing to agree to leave a job you like, even if there’s a nice payday involved. But in this situation, the poster isn’t happy with their job, so they’re unlikely to miss it once they leave.

They also don’t think the company is viable on a long-term basis. So if they stay, they run the risk of being forced out of a job anyway. And at that point, there may not be a severance offer on the table, or an offer that’s as generous as 12 weeks’ pay. If they agree to leave now, they’re at least guaranteed a pile of money.

The poster has a couple of hesitations. First, they do very little work because the company is poorly managed, and they work from home. So it may be that on an hourly basis, they’re making a nice amount of money.

Secondly, they’re going to have to sign a severance agreement to get their money. And there may be different clauses in that agreement that could trip them up, such as a non-compete.

That said, non-competes can be pretty hard to enforce. And the poster says the main thing in the agreement that worries them is a disparagement clause. So as long as they don’t go badmouthing their former employer, they shouldn’t be in violation. And all told, the terms don’t sound too terrible.

An option worth taking

If the poster loved their job and wanted to stay, and if the company was in a stronger position financially, then I’d suggest that they think twice before taking a severance package. But it doesn’t look like the poster will be employed where they are for much longer anyway. So to me, the voluntary layoff package reads like a no-brainer.

With 12 weeks of pay, the poster can take some time to look into different job opportunities and hopefully find a better fit. They can also potentially take a couple of weeks off to regroup.

Of course, they may have to get on board with the idea of putting in more time at a future job they get. But since their current job doesn’t seem so stable, that may be inevitable.

How to decide if you should take a severance package

If you’re offered to leave your job voluntarily in exchange for severance, some key questions to ask yourself include:

• Is the company financially stable? If not, you may be out of a job eventually anyway.
• Will I miss the job if I leave? If you’re happy, it’s one thing. If you’re miserable, leaving sounds like a smart move.
• What opportunities will this allow me to explore? The comfort of your job may be holding you back from exploring better options.
• Are the terms of the severance agreement reasonable? If they’re very restrictive, you may not want to sign. It could pay to talk to an employment lawyer for guidance.

Once you address these points, you can hopefully come to the decision that’s best for your career as well as your finances.

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