Don’t Leave Money on the Table: Top Tips to Negotiate the Best Severance Package
When an employer offers a wrongfully terminated employee a severance package, it is usually not done out of the sheer goodness on the employer’s part, but rather because the wants something in return to protect its own business interests. We know this because in nearly every case, an employer’s severance package comes with strings attached: the employer nearly always asks the employee to sign its termination of employment letter and general full and final release document to receive the compensation offered in the severance package. As a result, it is usually in an employee’s interests to hire an Ontario employment lawyer to negotiate a severance package.
Among other things, when an employer wrongfully terminates an employee’s job, the employer will deliver such a severance package to the employee, offering to pay severance generally for the following main reasons:
- in exchange for a release of potential claims (court lawsuits) that the employee may bring against the employer, such as a wrongful dismissal, constructive dismissal, workplace harassment and human rights discrimination claims;
- confidentiality (asking that you keep all company private information secret and not discuss the terms of your severance package with others); and
- non-disparagement agreement (asking that you agree not to air out the employer’s dirty laundry and not publicly say anything negative about the employer).
Many people mistakenly believe an employer’s initial offer in the severance package, especially the financial compensation in the form of termination pay and severance pay, are fair and final. Likewise, many employees believe it is a “take-it-or-leave it” arrangement preventing them from hiring an experienced employment lawyer in Ontario to negotiate the severance package to obtain a better deal, especially when it comes with pressure tactics of deadlines to accept the offer (and thereafter not be able to negotiate the severance package or start a lawsuit for wrongful dismissal, and so on). However, this is generally untrue. In fact, as discussed above, the employer typically has an inherent incentive to convince an employee it is in their personal interests too to avoid starting a wrongful dismissal lawsuit by accepting the initial severance package and signing the legal release wants something.
Therefore, depending on the circumstances, there may very well be a strong likelihood that if handled properly by a top employment lawyer in Ontario with proven experiencing in negotiating a severance package, the employer will usually increase and improve their initial offer in the employee’s severance package. In this regard, our Toronto employment lawyer at Bune Law has successfully negotiated hundreds of severance agreements in Toronto over the years – and we have frequently (an overwhelming majority of the time) obtained more and better severance for wrongfully dismissed employees than what they were initially offered. Likewise, our employment lawyer has also frequently obtained substantial severance for individuals who were not even offered any severance by their employer (where the employer claim the employee is not entitled to a severance package because they wrongly resigned or the employer believed the employee was terminated for just cause).
As a result of our Toronto employment lawyer’s experience over the years of representing employees (as well as employers) in Ontario, we are aware of certain things that employees should keep in mind to enhance their likelihood of receiving the best severance package upon termination of employment:
- Always consult with an experienced employment lawyer to review a new employment contract before signing for your employer
- Always consult with an experienced employment lawyer to review a severance package before signing for your employer
- Do not try to negotiate on your own – employees are generally better off using the assistance of an Ontario employment lawyer
- You generally do not need to – and should not – sign a severance package right away without reviewing with an employment lawyer
- You should consider deadlines and act promptly by obtaining employment lawyer consultation advice
- At the termination meeting, remain professional and courteous by listening carefully and ask only pertinent questions
- Try to objectively assess and handle the situation in the best possible way, especially by hiring an employment lawyer to review and negotiate your severance package
- Write a chronology of relevant incidents/statements that concern you, such as workplace harassment, discrimination, reprisal and unfair performance reviews (e.g., performance improvement plans), which can help strengthen your case and obtain recourse for an unjust dismissal
- gather documents by looking for and providing any employment contract you previously signed to an experienced employment lawyer to review and help you determine if you have a claim for wrongful dismissal, constructive dismissal and opportunity to obtain and negotiate a fair severance package. It is also important to compile documentation of your achievements, positive performance reviews, and any contributions that demonstrate your value to the company.
- Be organized, minimize emotion, and realistic – do not overestimate your situation and under-value your position. Remaining focused and exercising emotional intelligence is important, and an employment lawyer is the often the best way to reach this objective.
If you are an employee who believes you were wrongfully dismissed from your employment without a fair severance package, or are experiencing workplace hostility or other difficulties, please call today to discuss your options and next steps on how to deal with a wrongful dismissal. As an employment law firm in Toronto, Bune Law has reviewed and negotiated improvements to many severance packages. You will review and get guidance on your severance package before you agree to sign any termination documents, and help ensure that your severance package is fair and reasonable.