How to Negotiate Severance in Canada

Can Severance Be Negotiated in Canada?

Yes. In Canada, most non-unionized employees can negotiate their severance package after being terminated from their job.

In fact, many initial severance offers are lower than what employees may be legally entitled to, and employers often expect some level of negotiation. That said, employment law in Canada is governed provincially, which means the rules around severance, notice, and termination vary depending on where you work.

This guide explains how severance negotiation generally works in Canada — and where to find province-specific guidance for your situation.

Why Employers Expect Severance Negotiation

In many cases, an employer’s first severance offer is not their best offer. Employers often:

• Start with the minimum amount they believe an employee may accept
• Rely on employees feeling pressured to sign quickly
• Assume the employee does not know their full legal rights

Negotiation is a normal part of the severance process, especially for long-term employees, managers, professionals, and older workers.

When Does It Make Sense to Negotiate Severance?

Negotiating severance may make sense if:

• You were employed for several years or more
• You held a senior or specialized role
• You were terminated without cause
• Your severance offer seems low compared to your age, role, or tenure
• You were asked to sign a release quickly

Even when a termination is legal, the amount of severance offered may still be inadequate.

Common Severance Negotiation Mistakes

Employees often harm their position by:

• Signing a severance package too quickly
• Negotiating directly with HR without legal advice
• Focusing only on salary, not benefits or bonuses
• Missing deadlines that affect their legal options

Because severance rights are legal rights, negotiation is often most effective before anything is signed.