Severance Package Review
What is a severance package?
A severance package is the bundle of payments and terms offered when employment ends - typically including notice or pay in lieu, and in some cases statutory severance. Many employees may also have additional entitlements at common law based on their role, length of service, age, and the job market.
Workers in federally regulated sectors (for example, banking, telecom, airlines) may be under different rules; the Canada Labour Code can apply.
Why get a review before you sign?
Most packages include a release that waives legal rights. Deadlines are often short. Strategy matters - especially before filing an ESA complaint or starting a lawsuit - so it’s wise to get advice first.
Value is about more than base pay. We look at benefits continuation, bonus and commission eligibility, vacation pay, equity or stock plans, and practical items like reference letters.
What we review (checklist)
• Notice and severance calculations (ESA minimums vs. potential common-law ranges)
• Termination clauses in your contract and whether they’re enforceable
• Benefits continuation (health, dental, LTD), vacation, and PTO treatment
• Bonus, commission, and incentive plans during the notice period
• Equity items such as stock options, RSUs, ESPPs, and vesting terms
• Release wording, confidentiality, and non-disparagement language
• Restrictive covenants (non-compete and non-solicitation)
• Payment structure (lump sum vs. salary continuance) and milestones
• Clawbacks, mitigation language, and reference letters
• ROE details and basic tax timing considerations
Lump sum vs. salary continuance
A lump sum pays everything at once; continuance spreads payments over time. Continuance offers sometimes stop or reduce if you find new work (mitigation or “stop” clauses) but may keep benefits going longer. Lump sums can offer certainty up front but may change how and when amounts are taxed. The best structure depends on your goals, cash-flow needs, benefits, and job prospects.
Timing, deadlines & limitation periods
Signing windows can be short. It’s common to ask for time to review the offer. Civil wrongful dismissal claims are subject to strict limitation periods; many claims must be started within two years of discovery. You generally must choose between an ESA complaint for termination/severance amounts and a court claim about the same termination- get advice before you elect a path.
Our Ontario-focused process
Document intake and quick review: we confirm jurisdiction, timelines, and your goals.
Entitlements analysis: we assess ESA and potential common-law entitlements side by side.
Strategy and negotiation: we advise on counterproposals, clarifications, and risk.
Finalizing terms: we ensure the written agreement reflects what was negotiated and discuss next steps.
Who we help across Ontario
We assist non-unionized employees and employers across Ontario, including Toronto, Ottawa, Mississauga, Brampton, Hamilton, London, Kitchener-Waterloo, Markham, Vaughan, and Windsor. Virtual consultations are available province-wide.
FAQS
Should I sign by the deadline?
Not before you understand the consequences. It’s common to ask for time and get advice first.
Can I negotiate a better severance?
Often, yes. Outcomes depend on your contract, your role and service, and the circumstances of termination.
Do I get severance if I resigned or it was “constructive”?
If major changes were imposed without consent, it may be a constructive dismissal. That can affect entitlements - get advice quickly.
Will severance affect EI?
The timing and structure of payments can affect EI. Coordination with ROE details and payment terms matters.
How long does a review take?
Once we have your documents, reviews are typically quick, though timelines depend on complexity and negotiations.
Speak with an Ontario employment lawyer
Book a confidential consultation to understand your options in clear terms so you can decide how to proceed. We discuss potential strategies, timelines, and costs in advance.