When an employe’s job is terminated, they are usually given documentation called a “termination package” (or “severance package”). This consists of a termination letter (confirming their employment is officially terminated), a severance pay offer, and a request for the employee to sign and provide the employer with a “full and final legal release” (a waiver the employee signs giving up their right to sue the employer for issues related to their employment).
In an effort to resolve things quickly, an employer’s offer is usually presented or worded in such a way as to persuade the employee to accept the severance offer and sign the legal release, without questions or an opportunity to negotiate. For example, the employee is told the offer is only available for a short period of time (e.g., 7 days), after which it will no longer be open to accept.
The employer’s aim is basically to intimidate the employee and have them believe they are not entitled to receive any more severance pay. However, this simply not the case. In fact, employees are usually entitled to far more pay in lieu of notice under common law than employers initially let on. Why? To minimize how much severance pay they have to provide.
Speak with an Employment Lawyer about Your Severance Package
The prudent thing for employees to do is review their employer’s financial severance package with an employment lawyer. Among many important benefits, this will ensure the employee:
- understands whether the severance pay offered is fair and appropriate
- assess whether it makes sense to negotiate improvements to the severance package
- determine if they have other claims against the employer, such as wrongful dismissal, discrimination or bad faith damages
- weigh the pros and cons of accepting the severance package, negotiating important changes to the severance package, or consider other avenues to pursue.
Termination of Employment Without Cause
In most cases involving employees whose employment is terminated without cause (e.g., no serious misconduct), employers must provide a financial severance package. Generally, the only issue in dispute will be how much severance pay the employee must receive. Unless limited by a termination clause in an employment contract, the employee severance pay is determined by reviewing court decisions based on the employee’s:
- age
- length of service working for the employer
- type of job
- skills, education and experience
- other factors impacting the ability to re-employee, such as disability/health issues.
If the employee fails or refuses to provide the appropriate amount of severance pay, or if they terminate the employee’s job claiming just cause but is unable to prove it, the employee may pursue a claim of wrongful dismissal to obtain severance pay (in addition to additional compensation to which they may be entitled).
SEVERANCE PACKAGE REVIEW & NEGOTIATIONS
It is critical for employees to have their severance package reviewed by an experienced employment lawyer to ensure that it is fair and reasonable for them in their circumstances.
In the vast majority of cases, Bune Law is able to help employees reach an amicable severance package settlement with their former employer, without the need for a wrongful dismissal claim.
If you have have been terminated from your employment and are unsure how to respond to the dismissal, you may contact Bune Law to obtain an initial consultation to determine your rights, legal entitlements and options.
If you are an employee who would like to discuss your severance package, feel free to contact Bune Law at 647-822-5492 to get legal advice regarding your specific rights and options.
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