Full and Final Release: Your 2025 Guide to Severance & Employee Rights

What is a Full and Final Release?

A Full and Final Release is a legally binding agreement that employees are often asked to sign after being fired or laid off. By signing it, you agree not to pursue any future claims or legal action against your employer in exchange for compensation—usually a severance package.

It may sound simple, but this document can have serious consequences. Once you sign it, you may lose your right to file claims for:

• Wrongful dismissal
• Unpaid wages
• Constructive dismissal
• Human rights violations
• Workplace harassment

Because of the long-term impact, it’s crucial to review the terms carefully before signing.

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Why Employers Use a Full and Final Release

Employers use this document to protect themselves from future lawsuits. When you sign, you’re giving up the right to take legal action – even if you later discover that your severance offer was too low or your termination was unfair.

While the offer might come with a deadline, it’s important to know:

This means you have time to review the agreement and get proper advice.

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Should I Sign a Full and Final Release Right Away?

No. Do not sign a Full and Final Release immediately after losing your job.

Many employees feel pressured to sign quickly to receive their severance – but rushing into it can cost you thousands of dollars. A Full and Final Release often contains clauses that heavily favour the employer and limit your ability to get what you’re actually owed. Learn more about why you shouldn’t sign a severance offer too quickly.

Before signing anything, ask:

• Does the severance match what I’m legally entitled to?
• Have I considered whether I may have a wrongful dismissal or discrimination claim?
• Have I spoke to an employment lawyer?

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Watch: Severance Package Primer for Canadians

In this video, employment lawyer Lior Samfiru explains what every Canadian employee should know before accepting a severance offer, on the Employment Law Show.

LEARN MORE
• Can I negotiate my own Ontario severance package?
• Use the Severance Pay Calculator
• Severance packages by Company

Can I Negotiate a Full and Final Release?

Yes. In many cases, the initial severance offer is low. Employers count on the fact that most employees won’t know they can negotiate – or that they’ll feel pressured to accept whatever is offered.

An employment lawyer can:

• Review the release and identify unfair clauses
• Explain what you’re giving up
• Help you negotiate for a better package

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Can a Full and Final Release be Challenged in Court?

In most cases, courts will enforce a signed release. That’s why it’s so important to review it before agreeing. But there are exceptions.

A court might invalidate a release if:

• You signed it under duress or without understanding it
• The offer was grossly unfair
• There was a power imbalance or lack of legal advice

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What If I Don’t Sign the Release?

If you choose not to sign:

• You can still pursue legal claims for severance and human rights damages
• You may not receive the employer’s severance offer – but you may be entitled to much more

Severance pay in Ontario, Alberta, and B.C. can reach as much as 24 months’ compensation, depending on your age, position, and length of service.

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How Our Employment Lawyers Can Help

At Samfiru Tumarkin LLP, we help non-unionized employees across Canada understand their rights and negotiate fair severance packages. If you’ve been offered a Full and Final Release, we can:

• Review your release in details
• Determine if the severance offer is fair
• Negotiate better compensation
• Protect you from signing away valuable legal rights

What to Do if You’re Presented With a Full and Final Release

1. Don’t sign it right away
2. Contact an employment lawyer at Samfiru Tumarkin LLP before agreeing to anything
3. Know your rights – you may be entitled to far more than what’s offered

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Frequently Asked Questions (FAQs)

What is a Full and Final Release in employment law?

It’s a legal document that waives your right to sue your employer in the future in exchange for compensation, usually severance pay.

Do I have to sign a Full and Final Release to get severance?

Not necessarily. You may be entitled to more compensation then what’s offered, even without signing.

Can I negotiate the terms of a Full and Final Release?

Yes. Many releases are negotiable – especially the amount of severance and any restrictive clauses.

Can a Full and Final Release be overturned?

In rare cases, yes – especially if the agreement was signed under pressure, without legal advice, or if the terms were clearly unfair.

What rights do I give up by signing a release?

You give up the right to sue for wrongful dismissal, unpaid wages, harassment, discrimination, and other claims to your employment.

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Contact Us Before You Sign Anything

Before you sign a Full and Final Release, speak to Samfiru Tumarkin LLP, Canada’s most experienced employment law team. We’ve helped over 50,000 individuals secure millions of dollars in compensation.

Call 1-855-821-5900 or fill out our confidential online form to speak with an employment lawyer today. Get the advice you need and the compensation you deserve.