Negotiate a Better Severance Package

How do I Negotiate a Severance Package?

When it comes to understanding how to negotiate a severance package, there are important issues to consider. After an employer terminates employment, it will usually offers a terminated employee a severance package. However, it is important to know this not done out of generosity or goodwill from the employer. Instead, it is because the employer wants something (important) in return that it will use to protect itself. This key document is called a full and final legal release, which an employee signs to forfeit (give up) their legal rights and claims against the employer, including suing for a wrongful dismissal claim, constructive dismissal claim, or a discrimination claim.

The most important reasons an employer will offer a severance package to an employee after a termination of employment include:

in exchange for a legal release of potential legal claims that the employee may bring against the employer (which is why the severance pay agreement is frequently called a “Severance Package”)
confidentiality agreement (asking the employee to keep private information secret, especially employer’s proprietary information or the details of the severance package)
non-disparagement agreement (asking the employee to agree not to spill information about the employer, or publicly say anything negative about the Employer)

Most employees mistakenly believe that an employer’s initial severance package offer in a wrongful termination (in terms of monetary compensation and other details, such as non-solicitation) are fair, or even final and they cannot negotiate a severance package to get more severance pay. However, this is generally untrue. In fact, as the reasons stated above make clear, the employer wants something to protect itself – especially, the legal release. As a result, if negotiated properly through an experienced employment lawyer, the employer will increase and improve the initial severance package.

Keep in mind: the golden rule is “don’t sign a severance the severance package right away!”- even if you might feel tempted in the heat of the moment. At Bune Law, our employment has negotiated hundreds of severance packages in Toronto over the years – and we have frequently (an overwhelming majority of the time) obtained more and a better severance package for employees than what their employer initially offered them. In many cases, we have also obtained substantial severance for individuals who were not even offered any severance in wrongful dismissal cases where the employer alleges a termination for just cause.

As a result of our experience as an employment law firm in Toronto over the years acting for both employees and employers, we understand there certain things that an employee can and should do to enhance their likelihood of receiving a great severance package from their employer. With that in mind, the following practical tips may be helpful:

Don’t try to negotiate a severance package on your own – hire an Ontario employment lawyer. In fact, quite often, if you send your employer a counter-offer to the initial severance package in your termination letter, very often does not go well well. In fact, from our experience as an employment law firm in Toronto, we know that wrongfully dismissed employees who go it alone with their employer makes it much more difficult for us to get a maximized good result for you. Why? Some of the main reasons are that you have shown weakness by switching gears; delivering a severance offer independently without an employer lawyer’s expertise puts you at a disadvantage given an employer’s experience and having their own employment lawyer handle things for them; and we may very well have given a larger initial counter-proposal but will then be constrained to some extent by a lower initial counter-proposal that you gave.
You do not need to – and should not – sign the severance package right away
You do not need to – and should not – sign an employment contract right way (especially if it tries to limit your termination pay)
You should consider deadlines and act quickly to consult with an employment lawyer
At the termination meeting listen carefully, be professional and stay respectful
Try to objectively assess the situation and consider what leverage (positive arguments and negative arguments) you may have that may result in a top employment lawyer in Toronto convincing an employer to help you strategically receive more and better severance package
Write a chronology of relevant incidents/ statements, such as discrimination or workplace harassment
Be organized, focused, and realistic – do not overestimate your case and or sell yourself short – consult with an employment lawyer.

Call Now if You Are Looking for Employment Lawyer in Toronto

If you are an employee who believes they were wrongfully dismissed from your employment, it is important to speak with an experienced Toronto wrongful dismissal lawyer as soon as you are told by your employer that their employment will be terminated. Likewise, if you are an employee who believes you have been wrongfully dismissed and the decision to terminate was unjust or discriminatory, please speak with our experienced wrongful dismissal lawyer in Toronto regarding your options, including to negotiate a severance package to obtain the severance compensation you deserve, as well as wrongful dismissal claim.

Contact us by phone 647-822-5492 or fill out the contact form to the side. Our employment lawyer in Toronto would be happy to assist in your employment law matter as quickly as possible.

Disclaimer: The content on this website and blog is not legal advice or legal opinion of any kind, and is only to provide 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.