I Received a Termination Package. What Should I Do?

Should Employees Immediately Accept an Employer’s Termination Package?

Generally speaking, the short answer is “No.” In this employment lawyer blog post, we discuss the basic issues all (non-unionized) employees in Ontario should be aware of:

What is an employee termination package (sometimes called a “severance package”)?
What should I do if I was terminated from my employment and was offered a termination package?
What is typically included in a termination package?
How to negotiate a termination package?

What is an Employment Termination Package?

A termination package is essentially a settlement offer an employer provides to an employee after terminating their employment. Usually, it consists of an offer to provide the employee with severance pay and benefits when you lose your job through no fault of your own (that is, if your employment was terminated “without cause”).

What Should I Do After Receiving a Termination Package?

Contact an experienced Ontario employment lawyer. At Bune Law, our lawyer focuses on employment law, so he is in the best position to judge your employer’s severance offer in the termination package, from both a legal standpoint (is it fair and are you entitled to more) and a practical one (is it worth the time and cost, and what are the pros and cons)? If it’s not fair, our experienced employment lawyer in Toronto also in the best position to protect your interests and strongly negotiate for a fair settlement.

It is always important to consult with an employment lawyer to review the circumstances leading to your termination of employment, as well as to review the termination package. If you have been offered severance pay then they can evaluate if it is a fair offer. If it is not adequate, then an employment lawyer can help you assess whether you have a case and negotiate for a fair settlement offer. Regardless of the type of job you held, including whether you were an executive, manager or administrative employee, it is important to gather and/or send our employment lawyer the following:

A short summary detailing the circumstances leading up to your termination of employment
A detailed description of all of the income you were earning in your job, including:
- annual base salary
- bonus pay/STIP/LTIP, etc.
- RSUs/PSUs/Stock options, etc.
- health insurance benefits
- car allowance
- RRSPs, defined contribution pension plan, defined benefit pension plan, etc.
- other perks or benefits of your job.
Your T4’s for the last three (3) fiscal years
Any copies of an employment contract that you previously signed with your former employer (which sometimes limits your severance compensation to only the minimums required by the Ontario Employment Standards Act, 2000).

A few other important points to keep in mind: If you experiencing difficult issues before your employment was terminated, such as workplace harassment, discrimination, performance improvement plan, or changes to your job, document what was going on (but do not send yourself any confidential company information). Also, handle the termination meeting as respectfully and professionally as you can (although this is usually easier said than done), and do not discuss your situation with your colleagues or co-workers employer (even your best friends!). Most importantly, do not sign anything before getting legal advice from an employment lawyer, since signing a termination package (including a full and final legal release) prevents you from doing anything to challenge your termination, such as negotiating better a termination package, or suing your employer for wrongful dismissal or discrimination.

What is Typically Included in a Termination Package?

When an employer terminates an employee’s job, they generally confirm this in writing. Specifically, employers will provide an employee with a termination package consisting of, among other things: a written termination letter and a full and final legal release. The termination letter will usually consist of a severance pay offer to the employee as compensation for terminating their employment, in exchange for which the employee is asked to sign the full and final legal release preventing the employee from “going after” the employer, such as negotiating a better severance package or suing the employer for employment-related issues (such as wrongful dismissal or constructive dismissal). If signed, the termination package becomes a legally binding contract between the employer and employee.

How Are Termination Packages Negotiated?

For employees who want to ensure they are treated fairly, properly and get all of the severance compensation they deserve, a termination package is negotiated by an experienced employment lawyer. So, for example, employees who feel they were wrongfully dismissed, will hire me to negotiate their termination package with their employer, which will ensure their legal rights and interests are fully protected, including to maximize their severance compensation.

It is important to keep in mind that not every employee who is terminated is entitled to severance compensation. Typically, severance compensation is only provided to employees who were terminated without cause. So, if an employee committed misconduct, an employer may not be required to provide an employee with severance compensation. This is called “termination for just cause” and is determined on a case-by-case basis. To find out, an employment lawyer has to carefully assess the circumstances leading to your termination, which takes time and involves a detailed discussion. Most importantly, employees should never simply accept their employer’s argument that it had termination for just cause, as it is self-serving (and often unjustified).

You should contact an employment lawyer in Toronto, explain the full circumstances and get an opinion on your specific situation. That is the only way you can really receive accurate advice to protect your employee rights.

Contact Toronto Employment Lawyer Today

If you are an employee who was recently terminated from employment and offered a termination package, please speak with our experienced employment lawyer in Toronto regarding your options, including negotiating your termination package to obtain maximum severance pay compensation, as well as wrongful dismissal claim. It is rarely a wise decision to accept or sign a termination package without first reviewing it with an employment lawyer to understand whether it is fair, reasonable and your overall options. In some cases, it may take an hour of consultation, which will offer you peace of mind that your employer is treating your fairly, especially when it comes to the severance compensation being offered to you.

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.