Ah yes. I got to do that once after a layoff. The manager tried to guilt me or something into working after I was layed off. "Because they were given me severance so I should be ok with doing the work"
I told them. No you are wrong. I was given severance to sign an NDA and non-disparagement agreement. That is what the severance bought the company, but I'll be glad to discuss a consultant role on an hourly basis.
Companies love to frame severance as some kind of favor when really it’s a transaction. You handled it exactly how more people should!