Negotiate Severance Package with an Ontario Employment Lawyer

How to Negotiate the Best Severance Package in Ontario

When an employee in Ontario finds themselves without a job after a wrongful termination of employment, the most important thing to do is to speak with an experienced employment lawyer with expertise in a range of employment disputes. Among many other important benefits, an employment lawyer consultation will help you understand your employee legal rights and explain how to negotiate a fair severance package. This article will provide you with valuable insights and tips to help you navigate this challenging process.

Understanding Your Entitlements

Before entering negotiations, it is essential to understand your legal entitlements as an employee in a wrongful dismissal case. In Ontario, employees are generally entitled to Reasonable notice of termination (or financial compensation in the form of a severance package. Generally speaking, under common law, the amount of reasonable notice or financial compensation for termination depends on factors, including an employee’s length of service, age, position, job qualifications and current economic conditions (all of which impact an employee’s ability to re-employ in a comparable job).

However, if an employee has signed a legally enforceable employment contract with a termination clause where they agreed to receive a limited amount of notice of termination, or financial compensation, it would provide an employer justification to reduce them amount of compensation owed to the employee, even in the event of a wrongful dismissal. That said, in a termination of employment without just cause, the employer must always the employee with their statutory minimum entitlements under the Ontario Employment Standards Act, 2000.

The Importance of Legal Advice from an Ontario Employment Lawyer

Consulting with an employment lawyer is highly recommended. By reviewing all of your documentation and the circumstances of your employment and termination, an employment lawyer can assess your specific situation, calculate your potential entitlements, and provide expert guidance throughout the negotiation process.

Preparing for Negotiating a Severance Package

Gather documentation: Collect all relevant employment records, including your termination letter (or severance package), employment contract, pay stubs, performance reviews, and any correspondence related to your termination.
Research the Best Employment Lawyers in Ontario: it is rarely a wise idea to simply rely on information reviewed online, free consultations, advice from family and friends on how to negotiate a severance package, or determine your entitlements by using a “severance pay calculator.” Instead, properly assess your legal rights, entitlements and options by having a qualified employment lawyer in Toronto explain all of the details to you so you can make the most informed decision to maximize your chances of getting the best possible severance package (that is, financial compensation for your wrongful dismissal or constructive dismissal).
Identify your priorities: Determine the issues most important to you, whether it is maximizing a lump sum payment, extended your health benefits or pension plan participation, or extending the salary continuation period.
Practice your negotiation skills: Role-play with a friend or family member to build confidence and prepare for potential challenges.

Common Negotiation Tactics used by Employers

Employers may use various tactics to try and minimize severance payments. Some common tactics include:

Lowball offers: It is not uncommon for an employment lawyer negotiating a severance package on behalf of an employee to receive an initial offer that is lower than your expectations. Remember: their goal is to minimize their financial obligations to you (even without legal justification), so a highly effective way of balancing the unequal bargaining power is hiring the best employment lawyer to negotiate your severance package.
Delay tactics: Employers may delay the negotiation process to put pressure on you, often with the intention that the longer the severance package negotiation drags on, the more likely an employee will find a new job. In fact, given the impact of a terminated employee’s duty to mitigate, it can significant reduce an employee’s legal entitlements to a severance package.

Equally important, an Ontario employment lawyer with experience in negotiating severance packages or handling wrongful dismissal claims or constructive dismissal claims can explain that, to effectively negotiate, it is crucial to understand your employer’s perspective. Generally speaking, employers are still businesses at the end of the day – and, therefore, often want to minimize their financial obligations, avoid legal disputes, maintain a positive public image, and protect confidential information. By understanding these motivations, you can tailor your negotiation strategy accordingly to suit your own interests and goals.

Therefore, it is always important to remain calm and focused during severance package negotiations by levelling the playing field using a highly recommended employment lawyer to push back against an employer’s negotiation tactics.

Severance Agreement: What to Look For

If you reach a severance package agreement, an employment lawyer should carefully review the severance agreement before signing and exchanging it with the employer to finalize a wrongful dismissal or constructive dismissal case. Key points to consider include:

Severance amount: Ensure the agreed-upon amount is accurately reflected, including full compensation in terms of salary, bonus pay, commission and so on.
Benefits continuation: Verify the terms of extended health benefits coverage and pension plan participation.
Release of claims: Understand the scope and consequences of signing a full and final legal release on your potential legal rights and entitlements as a result of the settlement.
Confidentiality clauses: Evaluate the restrictions on sharing information about the termination or severance package negotiations.

An experienced employment lawyer can provide invaluable assistance throughout the negotiation process. They can:

Assess the strength of your case
Calculate your potential entitlements
Develop effective negotiation strategies
Review and negotiate the severance agreement
Represent your interests in legal proceedings if necessary

By working closely with an employment lawyer, you can maximize your chances of securing a fair and comprehensive severance package.

Book a Consultation with an Employment Lawyer in Toronto

At Bune Law, we understand and are familiar the complexities of workplace law and are committed to helping both employers and employees navigate these challenges. Whether you are an employer or employee dealing with employment contracts, workplace disputes like a wrongful dismissal or constructive dismissal, or simply need guidance on your rights and obligations for a severance package review and negotiation, our experienced employment lawyer is here to assist you.

Book a confidential consultation with our Toronto employment law firm to protect your legal rights to understand your options and protect your rights.

Why Choose Bune Law When You Need an Ontario Employment Lawyer?

Experience in all areas of workplace law, including wrongful dismissal claims, constructive dismissal claims, severance package reviews, severance package negotiations, discrimination and human rights disputes, and employment contract reviews.
Proven track record of successfully resolving workplace disputes through negotiation, mediation, and employment litigation.
Compassionate and personalized approach to each case, ensuring tailored solutions that meet your specific needs.

If you need a Toronto employment lawyer who is committed to delivering strong results and proactive solutions, please contact Bune Law online or by phone today at 647-822-5492.