Can I reject a severance package?

Yes. You may think that the severance package you received is unfair and want help negotiating a better package, especially if you were a long-time employee. If you reject the severance package, it does not mean that you are not entitled to any money. If your employer offers you a severance package, you should contact a lawyer to find out what your rights are as an employee and if your severance package is fair, as you could be entitled to more.

How long do I have to accept a severance package?

Many employers will try to get you to accept a severance package within a certain amount of time; like, for example, 48 hours or one week. However, in Ontario, the statute of limitations for wrongful dismissal is two years. This means that you can actually wait two years before accepting a severance pay offer from your employer.

Can my employer choose to give me advance notice instead of severance pay?

There are three options that an employer can choose from when terminating an employee: Working notice. The employee is given notice that they will lose their job at a later date. This could be weeks later, months later or a year later. Pay in lieu of notice. The employee is terminated and offered a severance package. A combination of notice and pay. Regardless, you should always contact an employment lawyer before agreeing to or signing anything.

Can severance pay be paid over a period of time?

Yes. An employer may choose to pay the severance package over a period of time (called salary continuance) or in one lump sum. This can often be negotiated by your employment lawyer.

How much severance am I entitled to?

The amount of severance you are entitled to depends on a number of factors. Some of these include: Length of employment Position held Salary Age Reason for dismissal An employment lawyer will be able to help you fully determine what you are entitled to. You can get an idea of severance pay owed through the Ontario Ministry of Labour’s calculator, although this is very general and should not be taken at full face value.

Severance Packages

Severance Package Lawyers in Ontario

An employment lawyer may be able to advise you if you are receiving a fair severance package. Severance is related to the amount of notice that an employee who has been terminated should have been given.

About Severance Package claims

The amount of a severance package depends on a number of factors, including, but not limited to, the position held in the company, number of years the person worked there, salary, age and actual reason for dismissal.

The employer may refer to the Employment Standards Act to determine the minimum amount of pay that is owed to the employee. However, the employee may be entitled to more pay, which is why it is important to contact a lawyer.

If you have received a severance package, you may want to contact an employment lawyer to find out if you are receiving a fair package. You should not feel pressured to sign the offer right away. You should find out what type of severance pay you are entitled to.

Answers to commonly asked questions

Can I reject a severance package?

Yes. You may think that the severance package you received is unfair and want help negotiating a better package, especially if you were a long-time employee.

If you reject the severance package, it does not mean that you are not entitled to any money.

If your employer offers you a severance package, you should contact a lawyer to find out what your rights are as an employee and if your severance package is fair, as you could be entitled to more.
How long do I have to accept a severance package?

Many employers will try to get you to accept a severance package within a certain amount of time; like, for example, 48 hours or one week. However, in Ontario, the statute of limitations for wrongful dismissal is two years. This means that you can actually wait two years before accepting a severance pay offer from your employer.
Can my employer choose to give me advance notice instead of severance pay?
There are three options that an employer can choose from when terminating an employee:
1. Working notice. The employee is given notice that they will lose their job at a later date. This could be weeks later, months later or a year later.
2. Pay in lieu of notice. The employee is terminated and offered a severance package.
3. A combination of notice and pay.
Regardless, you should always contact an employment lawyer before agreeing to or signing anything.
Can severance pay be paid over a period of time?

Yes. An employer may choose to pay the severance package over a period of time (called salary continuance) or in one lump sum. This can often be negotiated by your employment lawyer.
How much severance am I entitled to?
The amount of severance you are entitled to depends on a number of factors. Some of these include:
- Length of employment
- Position held
- Salary
- Age
- Reason for dismissal
An employment lawyer will be able to help you fully determine what you are entitled to. You can get an idea of severance pay owed through the Ontario Ministry of Labour’s calculator, although this is very general and should not be taken at full face value.