Losing your job can be stressful, but knowing your rights can help you get the support you deserve. If you’re a non-unionized employee who was let go or terminated, you’re usually entitled to either advance notice of termination or a severance package (pay in lieu of notice). However, not all severance offers are fair and it’s important to review yours carefully.
1. Don’t Assume the First Offer Is Fair
Many employers start with the legal minimum required by the Employment Standards Act (“ESA”), but that’s often much less than what you could be owed. Even if your contract says you only get the ESA minimums, these clauses are often found to be unenforceable by courts. In these cases, you are potentially entitled to much more under common law – sometimes up to two years’ pay, depending on your role, age, and how long you worked there.
2. Deadlines Aren’t Set in Stone
Many employees accept termination packages without realizing they could be entitled to significantly more. Employers know this and often given departing employees quick turn around times to sign and accept their first offer, sometimes with threats that the offer will expire. But these deadlines are usually flexible—if you ask for more time to review the offer, most employers will agree. Never rush into signing. Take the time to consult a lawyer who can assess whether the offer is fair or help you negotiate for more.
3. Look Beyond Just Salary
Many severance packages only include base salary, but you may be entitled to more, like:
- Bonuses;
- Commissions;
- Benefits (health, dental, etc.);
- Stock options;
- Profit-sharing plans; and
- Other perks you received while working such as car allowances.
A fair severance package should account for everything you would have earned if you’d kept working.
Get Legal Advice Before Signing
Severance packages are rarely straightforward. Accepting an inadequate package or signing a release without fully understanding your rights can have long-term financial consequences. At Marshall Law, we can review and negotiate an improved and severance package to ensure you receive fair compensation. We’ll help you navigate the complexities of your situation, advocate for your rights, and secure a package that reflects your contributions and circumstances.