FIRED AND OFFERED A SEVERANCE PACKAGE? THINGS TO CONSIDER BEFORE YOU SIGN

Have you been fired or let go from your employment and offered a severance package? Are you being pressured to sign a release? Do you want to know if your severance package is fair and includes what you are legally entitled to? I have compiled the list below of some general things to consider when you are offered a severance package. This is  meant as general advice and not legal advice. Please consult an employment lawyer for personalized advice. 

Do Not Panic! 

Terminated employees are frequently given limited time to review a severance package, with the employer imposing a short and unrealistic deadline. Almost always, the  employer advises the employee that if they don’t sign the release within their very short deadline, the offer will be null and void.   This approach often leads to anxiety for the employee forcing them to sign back the release out of fear of not being paid. This is what the employer intends.  It is crucial not to succumb to pressure and sign the severance package without sufficient time to carefully evaluate the offer and seek legal advice from an employment lawyer. Signing a release and agreeing to the employer’s first offer without legal advice could result in you leaving money that you are legally entitled to arising from the termination of your employment on the table. 

Have the Severance Package Reviewed by an Experienced Employment Lawyer 

The importance of having the severance package reviewed by an employment lawyer cannot be overstated. By having an employment lawyer review the package you can confirm that that package aligns with the minimum standards and, if applicable, the common law. Common law reasonable notice periods tend to be more generous than the minimum Ontario employment standards and take into account factors such as the employee’s age, length of employment, the character of employment and the availability of similar employment. 

When reviewing the severance package, the employment lawyer will also examine other relevant factors, including whether the employee was enticed to leave secure employment, whether the severance package is based on the employee’s total compensation, and any other relevant considerations that may impact the fairness of the severance offer.

Consider Your Options

If you have been terminated from your employment and received a severance package, you typically have several options to consider.  You can choose to accept the severance package offered, retain an employment lawyer and try to negotiate an increase to the package, pursue a claim for unjust dismissal (if applicable) or an Employment Standards Claim through the Labour Board or initiate a wrongful dismissal action in court. To determine the most suitable course of action, it is best to consult an employment lawyer who can provide valuable guidance based on the employee’s specific circumstances. 

An employment lawyer can conduct a thorough analysis of the available options arising from the termination of employment, weighing the potential costs and benefits associated with each approach. This allows the employee to make an informed decision that best aligns with their interests and objectives.

If you have been let go from your employment and offered a severance package, it is important  to have it reviewed by an Employment Lawyer to ensure that you are receiving fair compensation before you accept or sign a release. Severance packages and releases can be complex and difficult to understand. It is not uncommon for employers to offer inadequate packages or try to lowball an employee by offering them less than what they are legally entitled to.  Far too often, an employer’s first offer is usually just that, their first offer. Our Employment Lawyer, Karen Zvulony has helped hundreds of terminated employees improve their severance package in a cost efficient manner. Losing a job can be devastating, receiving what you are legally entitled to can help ease the transition.