LEGAL COUNSELNEAR ME
Employment Law

Your employer's severance offer seems low - what can you do?

Severance offers are opening positions far more often than employees assume. What you are owed depends on whether an enforceable termination clause caps your entitlement; without one, common-law reasonable notice applies and is assessed on service, age, role and how readily comparable work can be found. Negotiating is normal, and the release you are asked to sign is what makes the offer final.

What to do next

  1. Read the release before the number

    The offer is usually conditional on signing a full and final release. That is what ends the matter, and it is generally irreversible. Note the deadline - and know that asking for an extension to get advice is a routine request.

  2. Establish whether a termination clause binds you

    If your contract limits severance and the clause is enforceable, that is your entitlement. If it could pay less than the statutory minimum in any scenario, courts have commonly struck it entirely - which changes the analysis completely.

  3. Check what the offer leaves out

    Benefit continuation, bonus or commission earned or accruing during the notice period, unvested equity, vacation pay and pension contributions. Offers frequently address salary alone.

  4. Consider the non-monetary terms

    A reference letter, the wording of the departure announcement, timing of payment for tax purposes, and the scope of any non-compete or non-solicit are all negotiable and sometimes worth more than an extra week.

  5. Respond in writing, through counsel where the amount justifies it

    A reasoned counter-proposal referencing the contract and comparable notice periods is more effective than a general request. Most severance disputes resolve by negotiation rather than litigation.

Frequently asked questions

Will negotiating make the offer disappear?

Employers generally expect some negotiation, and the statutory minimum is owed regardless of the outcome. Get advice before responding if you are concerned about the dynamic.

How much notice is reasonable?

There is no formula. Courts weigh length of service, age, the nature of the position and the availability of comparable work. Anyone quoting a fixed rate per year of service is oversimplifying.

Does taking a new job reduce what I get?

It can. Earnings during the notice period are generally deducted, which is why the timing of a settlement matters and why advice before accepting a new role is useful.

What lawyer handles this?

An employment lawyer acting for employees. Ask about fixed-fee review, contingency arrangements and what a negotiation would realistically cost.

This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.

Dealing with this situation?

Tell us what happened and we will help you identify the type of lawyer who handles it.

By submitting, you agree to be contacted about your inquiry. This is not legal advice and does not create a lawyer–client relationship.

Top rated

Employment Law Firms Ready to Help

Independently verified — featured placements appear first.

CNESST, SAAQ, IVAC and disability insurance counsel in Montréal

Montreal, Quebec
  • CNESST
  • Disability Insurance
  • Employment Law
  • Insurance Law
  • IVAC
  • Long-Term Disability
  • Personal Injury
  • SAAQ

CNESST, SAAQ and IVAC counsel in Québec City

Quebec City, Quebec
  • CNESST
  • Disability Insurance
  • Employment Law
  • Insurance Law
  • IVAC
  • Long-Term Disability
  • Personal Injury
  • SAAQ

Corporate Law & Banking & Finance counsel in Dublin

Dublin, Dublin
  • Corporate Law
  • Banking & Finance
  • Tax Law
  • Civil Litigation
  • Employment Law

Go deeper

Guides, Forums & Where This Is Decided

Background reading and the bodies that hear employment law matters.

Related guides

  • Legal Resume & Cover Letter Guide

    How to write a legal resume and cover letter that survives screening: structure, what to include, what to cut, and the mistakes that get applications rejected.

  • Preparing for Legal Interviews

    How legal interviews work and how to prepare: common questions, competency and technical rounds, what to ask, and how to handle offers.

  • How to Become a Lawyer in Canada

    The path to practising law in Canada: undergraduate study, law school, articling, the bar admission process, and the route for foreign-trained lawyers.

  • How to Become a Paralegal in Canada

    How to become a paralegal: education programs, Ontario's licensing regime, what paralegals can and can't do, and how the role differs by province.

Where this is decided

All courts & tribunals

If your issue involves a company or institution, the Employment consumer rights section sets out how to escalate and who regulates it.

Related

More Legal Problems