Just lost your job? Don’t sign that severance offer yet!

Losing your job can be overwhelming. Along with the emotions of being let go, you’re now staring at a severance offer with a tight deadline. Your employer says you have just a few days to sign—what do you do?

Take a deep breath. That deadline is a tactic, not the law. Here’s what you need to know before signing anything.

1. Employer deadlines aren’t legally binding

It’s common for employers to give short deadlines—typically 2 to 5 days—for accepting a severance offer. But here’s the truth: they can’t take away your right to full severance after the deadline passes.

Deadlines are often used to pressure non-unionized employees into signing quickly, sometimes without fully understanding the offer. This rush can lead you to accept far less than you’re legally owed. You actually have two years to file a legal claim to pursue fair and full severance.

2. You can (and should) ask for more time

If you need more time to review the offer or seek legal advice, ask for an extension. Most employers will agree to it because they want to appear fair and reasonable. This gives you breathing room to assess your options and ensure you’re getting what you deserve.

3. Why you shouldn’t sign right away

Once you sign a severance offer, it’s legally binding. By signing, you may be giving up:

• The right to negotiate for more severance. Many severance offers start far below what you’re entitled to under employment laws. This is known as a wrongful dismissal in Canada.
• The ability to pursue legal action. Signing often includes agreeing to a “full and final release,” meaning you can’t challenge the offer later—even if it’s unfair.

4. What you could be owed

Your severance package depends on factors like:

• Length of service: The longer you worked, the more you may be entitled to.
• Age: Older employees may receive more due to difficulty finding new work.
• Position: Senior or specialized roles often come with higher severance.

Many employees are owed much more than the minimums outlined in employment standards legislation. You could be entitled to as much as 24 months of pay in Ontario, Alberta and B.C.

5. Take action before you sign

Here’s what to do when you’re handed a severance offer:

1. Don’t sign right away. Politely tell your employer you need time to review it.
2. Contact an employment lawyer. An employment lawyer at Samfiru Tumarkin LLP will review the offer and determine if it’s fair—or if you’re owed more.
3. Request an extension if needed. This gives you more time to get expert advice.

We’re here to help

At Samfiru Tumarkin LLP, we’ve helped over 50,000 employees across Canada secure the severance they’re legally owed. If you’ve been let go with or without cause and handed a severance offer, don’t sign until you speak with us.

In addition to severance package negotiations, our lawyers in Ontario, Alberta, and B.C. can help with a variety of employment matters, including:

If you’re a non-unionized employee, contact us to ensure you’re getting what you deserve. Your employer’s deadline doesn’t define your rights—we do.

Additional resources

• Negotiating your own severance package in Ontario, Alberta or B.C.
• Severance pay for provincially regulated employees
• Are severance packages different during mass layoffs?
• Severance entitlements in a recession
• I already accepted a severance package. What should I do?