If your employer has given you a termination letter and severance package, it is important to only sign it after speaking with an experienced employment lawyer. As employment lawyers, the vast majority of severance packages we review offer employees compensation that is much less than what the employee is legally entitled to receive from a termination of employment. The reason for this is simple – employers want to minimize the employee’s severance payout.
When considering a severance package, the key questions are:
- what would a court likely award me in a successful wrongful dismissal claim?
- have I signed a legally valid employment contract that limits my severance payout?
- how will an employment lawyer help me protect my rights and maximize my severance pay?
- how is a fair severance package calculated?
Even if a severance package appears to be fair – especially when employers attempt to sweeten the pot by saying things like “gratuitous payment” – the amount of severance pay offered may not reflect the true value you are entitled to, as well as what you could be giving up by signing a settlement agreement and legal release. Not only are you giving up the right to sue your employer by signing a legal release, you may be making other promises to your employer as well, like cooperating if the employer needs your help in applying for a new patent, not talking bad about the employer, or not competing against the employer by joining a new company.
Generally, without a signed agreement, you are not required to accept such post-employment restrictions on your livelihood. So, if your employer wants you to do something that you are not legally required to do, you should be compensated accordingly.
Under Ontario employment law, there are specific (and complex) rules regarding severance pay. Among other considerations, whether you are legally entitled to severance pay will depend on if your employment was terminated “without cause“. If so, as a bare minimum, employers must provide the amounts required by the Ontario Employment Standards Act, 2000, or possibly more under common law “reasonable notice” if there is no employment contract establishing the employee’s severance pay rights. However, the rules regarding an employee’s legal entitlements are complicated and continually evolve. As a result, the reality so what you get may come down to negotiation.
A good employment lawyer can help you to negotiate a better severance package which is fair in light of your situation.
You should ask your employer for some time to review the severance package. Use this time to consult with an employment lawyer.
How to Improve My Severance Package
One of the most common questions we get as employer lawyers is: how do I improve my severance package? There is no simple answer, but below, we outline the 4-step process well-informed employees undertake in every severance negotiation. While every situation is different and there are many considerations that go into each person’s case, the list below provides a general overview:
Step 1: Call an Employment Lawyer
By contacting our office, we will provide you with a preliminary overview of your situation, and connect you with a employment lawyer at Bune Law. Once your consultation is scheduled, you will speak in detail with an experienced and knowledgeable employment lawyer to obtain advice. In the consultation, you will have the option of retaining the employment lawyer to assist with your case, and customize step-by-step game plan to help present your case in the best light possible to maximize your severance entitlements.
During the consultation, the employment lawyer will help you answer the above questions to determine a fair severance package before you sign the severance package.
Step 2: Present You Story and Gather Your Documents
You need to gather all of the facts and documents related to your employment situation before you begin your severance negotiations with an employment lawyer. It may be helpful to think about your employment history, including all positive and negative moments, and save all agreements/policies you were ever given or signed from your employment. Also think about your performance during the course of your employment, and create a timeline of events (e.g., dates, names, titles and anything you can think of that is relevant to your employment situation).
Step 3: Find Your Strengths and “Achilles Heel”
With employers, severance package negotiation is all about who has to the most leverage. How do you determine who has leverage? The starting point is understanding – with the help of an employment lawyer’s representation – all of the strengths and weaknesses in your case. For example, do you have an overall good performance history? Are you limited by a valid employment contract? How long have you been working with the same employer? Are there any other issues beyond severance pay that should be addressed, such as discrimination or workplace harassment.
The importance of retaining an experienced employment lawyer cannot be overstated. It is by far the most effective way to level the playing field with your employer to achieve your goals, by creating a strategy and to keep your eye on the ball during severance negotiations.
To some people, getting “more money” is the only priority. Far more often, however, an employment lawyer may also help you to accomplish other important goals: obtaining your hard-earned bonus pay, extending your health and pension benefits, positive letter of reference, career outplacement services, stock options, and peace of mind, just to name a few.
Step 4: Go for It! See how an Employment Lawyer Can Improve and Negotiate Your Severance Package
If you have properly thought about what you hope to accomplish, gathered your documents, and thought through your strategy, all that is left to do is to go for it – speak with an employment lawyer to learn your rights and options. As the old saying goes: “nothing ventured, nothing gained.”
Our employment law firm reviews and negotiates severance packages all the time. We charge a reasonable flat fee for a full review of the severance package, and then often a percentage based on improvement of severance. Think about your options before you sign any severance package. Even if we cannot enhance your severance package, we will provide you with a paragraph-by-paragraph review of your severance package. Contact us for more information. We would be happy to help.
Call Now to Improve Your Severance Package
Bune Law, Toronto Employment Lawyer can help you decide whether the severance you were offered by your employer is fair, and if not, help you obtain more severance pay.
Here’s How it Works:
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You pay a flat fee for the initial consultation (usually $250 + tax).
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We review your severance package with you word-for-word, from top to bottom to make sure you understand everything.
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We negotiate on your behalf when retained. Our fee when we negotiate is a percentage of the monetary improvement we get for you (usually a percentage of the improvement, plus taxes).
Call today – (647) 822-5492 – we have employment lawyer standing by. You will probably get an employment lawyer on the phone right away. You can also fill out the “Contact Us” box below – and a severance lawyer will receive your request right away.
Disclaimer: The content on this website and blog is not legal advice or legal opinion of any kind, and is only general information. It is in no way particular to your individual case and should not be relied upon in any way. The outcome of a legal matter depends on its unique circumstances, and prior successes are not indicative of future results. No portion or use of this website or blog will establish a lawyer-client relationship with the author, this law firm or any related party. Should you require legal advice for your particular situation, please fill out the form below, or call 647-822-5492, to request an initial consultation.