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Should You Accept Your Severance Offer? Ask a Toronto Employment Lawyer Before Signing 

Should You Accept Your Severance Offer? Ask a Toronto Employment Lawyer Before Signing 

byLecker & Associates | Calculating Severance Pay in Ontario , Employee Rights and Entitlements

A termination package often combines different legal obligations into a single offer. Some amounts may be owed regardless of whether the employee signs anything.  

Other amounts may be offered only if the employee signs a full and final release.  

Before accepting a severance offer, an employee should understand the statutory minimums, the employment contract, any potential common-law entitlement and the rights being released. 

Your Employer’s First Offer Is Not the Legal Measure of Your Entitlement in Ontario.

The Employment Standards Act, 2000 (ESA) establishes minimum termination rights and, for qualifying employees, statutory severance pay. Those minimum standards are separate from common-law reasonable notice. 

Unless an enforceable employment agreement validly limits the employee’s entitlement, common-law reasonable notice may be materially greater than the ESA minimums. Courts assess reasonable notice contextually, considering factors that include age, length of service, the character of the employment and the availability of comparable work. 

The employment agreement should therefore be reviewed before assuming that either the ESA minimums or a common-law assessment governs the termination. 

What Should a Severance Package Review Cover? 

A proper review goes beyond the number of weeks or months of base salary. Relevant documents may include the employment agreement, termination letter, compensation records, incentive plans, benefit information and the proposed release. 

Depending on the governing terms, the review may need to address: 

  • salary or wages during the applicable notice period; 
  • bonuses, commissions and other incentive compensation; 
  • health, dental and other benefits; 
  • pension, retirement or RRSP contributions; 
  • equity compensation, including stock options or restricted units; 
  • vacation pay and outstanding wages; and 
  • allowances or other recurring components of compensation. 

Reference language, confidentiality obligations, non-disparagement provisions and post-employment restrictions can also affect the value and risk of the proposed settlement. 

Why the Release Matters in Ontario.

An employer may require a release in exchange for compensation above amounts it must provide without one. The release commonly requires the employee to give up further claims arising from the employment relationship or its termination, subject to the wording and enforceability of the document. 

Employees should also identify whether the termination followed a disability-related leave or accommodation request, pregnancy or parental leave, a harassment complaint, a human-rights concern or a workplace-safety complaint. Those facts may engage legal rights beyond ordinary wrongful dismissal. 

Can You Negotiate a Severance Offer in Ontario? 

Many enhanced termination offers are negotiable, but negotiation should be based on the employee’s legal position rather than an arbitrary request for more money. A counterproposal can address the notice period, compensation components, benefits, reference terms and the wording of the release. 

An employer may allow an above-minimum offer to expire or may change that enhanced offer during negotiations. That risk should be distinguished from statutory minimum obligations that remain payable regardless of whether the employee accepts an enhanced settlement. 

Review the Offer Before You Sign in Ontario

The practical question is not whether the package sounds generous. It is whether the employer has correctly identified the governing legal standard and whether the consideration offered for the release justifies the rights the employee is giving up. 

Lecker & Associates advises employees across Ontario on termination packages, wrongful dismissal claims, severance negotiations and the enforceability of employment-contract termination clauses. If you have received a severance offer, early legal review can help determine which amounts are owed regardless of a release, whether common-law reasonable notice remains available and whether the proposed settlement reflects your salary, benefits, incentives and other compensation. Our team of Toronto employment lawyers can be reached at 416-223-5391 or intake@leckerslaw.com for a confidential consultation.

How Lecker & Associates Can Help

Lecker & Associates advises employees across Ontario on termination packages, wrongful dismissal claims, fixed-term contract disputes, and severance negotiations. If your fixed-term contract ended before the agreed end date, early legal review can help determine whether the employer had the right to end the contract, whether the termination clause is enforceable, and whether the offer reflects the full value of the remaining term. Our team of Toronto employment lawyers can be reached at 416-223-5391 or intake@leckerslaw.com for a confidential consultation.

FAQ Image

FAQ: Should You Accept Your Severance Offer?

Not before understanding what it includes. The offer may combine statutory minimums with additional compensation offered for a release. Review the employment agreement and package before deciding whether the enhanced portion should be accepted or negotiated. 

The offer letter will usually state a deadline for any enhanced payment that is conditional on a release. The deadline does not eliminate the employer’s statutory minimum obligations. Depending on the circumstances, an employee may also request additional time to obtain legal advice. 

An employer may change or withdraw an amount offered above its minimum legal obligations, subject to the terms of the offer and general contract principles. Statutory minimum entitlements are a separate issue. 

Ontario statutory severance pay is a specific ESA entitlement available only when the eligibility requirements are met and is calculated under the statutory formula. Common-law reasonable notice is different and is assessed case by case. The two concepts should not be treated as interchangeable.

A valid release will generally prevent further claims that fall within its wording. Because the scope of a release can extend beyond wrongful dismissal, it should be reviewed together with the compensation offered in exchange for it.

Testimonials from Employees Like You

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This is the second time I have turned to Lecker & Associates for assistance with a work-related legal matter, and once again, the experience has exceeded my expectations. Counsel Jordan Reiner provided exceptional support throughout the process, demonstrating a thorough and thoughtful assessment of my situation, sound guidance grounded in experience, and a genuinely client-centered approach. He took the time to understand the circumstances, clearly explained my options, and provided the professional guidance and reassurance needed to navigate the matter with confidence. Thanks to his expertise, diligence, and commitment to achieving the best possible outcome, my legal matter was resolved successfully. It is reassuring to know that I can rely on a firm that combines legal expertise with a genuine commitment to its clients. I highly recommend Counsel Jordan Reiner and Lecker & Associates to anyone seeking knowledgeable, professional, and results-oriented legal representation, particularly in employment-related matters. Their consistent quality of service is the reason I have returned to the firm, and I would not hesitate to seek their assistance again.
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I had a great experience and outcome with the help of Nathan Whitteningham-Paralegal. He was professional and knowledgeable. He was always available to answer my many questions, explained my rights, and outlined the best approach to handle my situation with confidence. Though it felt like an eternity, Nathan was able to wrap up matters in quick order. I highly recommend his services.
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I had an excellent experience working with Jordan Reiner and Ashley Hussey on my case. They were professional, knowledgeable, responsive, and genuinely supportive throughout the process. I truly appreciate their dedication and the quality of service they provided. Highly recommended!
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I had a very positive experience with Lecker & Associates throughout my employment matter. Ashley Hussey and Ms. Ponniah were both professional, responsive, knowledgeable, and supportive throughout the process. They explained the process clearly, kept me informed, and handled my matter with care and professionalism. I truly appreciate their hard work and guidance, and I would recommend Lecker & Associates to anyone looking for professional assistance with an employment matter.
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I had the pleasure of being represented by Soniya regarding my employment matters. Soniya, Ashley, and Melissa were prompt, organized, and responsive throughout the process, ensuring that all of my questions and concerns were addressed. I truly appreciated their professionalism, guidance, and commitment to protecting my best interests. I would highly recommend their services.
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I’m extremely grateful for all the help and guidance I received with my employment matter. Matthew Fisher was incredibly knowledgeable, supportive, and genuinely dedicated to fighting for me. They took the time to explain everything clearly, answer all of my questions, and guide me through every step of the process. Eslita was excellent — very responsive, organized, and proactive with communication, which made everything feel smooth and well-managed. I truly appreciate the time, effort, and care that went into my case. I would absolutely recommend Matthew to anyone who needs someone knowledgeable and committed to fighting for their rights.
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Awesome Team ⭐⭐⭐⭐⭐ "Thank you so much to Soniya Ponniah and Ashley Hussey at Lecker & Associates. You provided wonderful support, guidance, and clear communication throughout this employment law matter. Your exceptional legal counsel and strategic management led directly to a successful and highly agreeable resolution. I highly recommend your legal services. Thank you again!"
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⭐⭐⭐⭐⭐ Excellent Employment Law Firm I had an excellent experience working with Lecker & Associates regarding an employment matter. From the beginning, I was treated with professionalism, respect, and genuine care. I would especially like to thank Ms. Soniya Ponniah and Ashley Hussey for their outstanding guidance, communication, and support throughout the entire process. They took the time to answer my questions, kept me well informed, and made sure I understood each step along the way. Their professionalism and attention to detail gave me confidence that my matter was in capable hands. What stood out to me most was how responsive, knowledgeable, and respectful they were. Dealing with an employment matter can be stressful, and having experienced professionals supporting and guiding you makes a significant difference. I am extremely grateful for the service I received and would confidently recommend Lecker & Associates to anyone seeking professional and knowledgeable employment-law assistance. A sincere thank you to Ms. Soniya Ponniah, Ashley Hussey, and the entire Lecker & Associates team for your exceptional service, professionalism, and support.
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I had a helpful and informative consultation with Nathan Whittingham. He was professional, attentive, and took the time to explain my options clearly. The consultation is a paid service, but I found the guidance valuable and appreciated his time and professionalism.

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