How to Negotiate Severance in Ontario (Step-by-Step Guide)

If you’ve been let go from your job in Ontario, you’re likely wondering how to negotiate severance — and whether the package your employer offered is actually fair.

Here’s the truth: most non-unionized employees in Ontario are owed far more severance than their employer first offers. In many cases, it can be months or even years of pay, depending on your age, position, and years of service.

While severance negotiation is common across Canada, employment law is provincial. This guide focuses specifically on how to negotiate severance in Ontario.

What Is a Severance Package in Ontario?

In Ontario, a severance package refers to the total compensation an employer provides when a non-unionized employees is terminated without cause. It can include:

• Severance pay Ontario
• Termination pay
• Benefits continuation
• Bonuses, commissions, and vacation pay
• Reference letter or job-search support

Can You Negotiate a Severance Package in Ontario?

Yes. Absolutely.
Most employees can — and should — negotiate severance.

Employers often start with a low offer, assuming you’ll sign quickly. But once you sign a release, you lose your ability to negotiate forever.

If you’re wondering “can you negotiate severance?” or “can you negotiate a severance package if fired?”, the answer is: yes, and it’s your right to do so.

How to Negotiate Severance in Ontario: 7 Steps

Here’s a simple, step-by-step process that works for most employees.

1. Don’t sign anything right away

Your employer may pressure you to sign within a day or two.
You don’t have to. The deadline is negotiable.

2. Calculate what you’re actually owed

Use the firm’s Severance Pay Calculator Ontario to get an estimate.
Many people discover they’re owed significantly more than the initial offer.

3. Gather your documents

This helps you understand what you can negotiate:

• Employment contract
• Offer letter
• Latest severance letter
• Pay stubs / commission plans
• Benefits booklet

4. Understand your leverage

Under Ontario common law, severance entitlement is influenced by:

• Your age
• Your job position
• Your length of service
• Your ability to find new work

These factors determine how much severance you can claim.

5. Prepare your counter-offer

If you’re searching how to counter offer a severance package, here’s a simple structure:

Severance Negotiation Email Sample

Hello [Employer],

Thank you for providing the termination letter and severance details.

After reviewing the offer, I believe it does not reflect my full entitlements under Ontario employment law, including common law severance based on my age, role, length of service, and other factors. I would like to continue the discussion about an offer that reflects these factors.

I look forward to resolving this matter cooperatively.

Sincerely,
[Your Name]

6. Negotiate more than just pay

You can also request:

• Extended benefits
• Outstanding bonuses or commissions
• Payout of unused vacation
• A positive reference
• Outplacement support

7. Get legal help before negotiating

How to Ask for More Severance Pay

You can say something as simple as:

“I’ve reviewed the numbers and I don’t believe the package reflects my full entitlements under Ontario law. I’d like to discuss an improved offer.”

The law is on your side — not your employer’s.

How to Negotiate Severance When Fired for Cause

In Ontario, employers often allege “just cause” to avoid paying severance — but the legal standard is extremely high.

When Should You Call an Employment Lawyer in Ontario?

While some employees try to negotiate severance on their own, there are many situations where speaking with an Ontario employment lawyer before responding to an offer is strongly recommended.

You should consider getting legal advice if:

• You were employed for a few months or several years
• You are over 40, or nearing retirement (See: Terminating Older Employees in Ontario)
• You held a managerial, professional, or specialized role
• Your employer is offering only ESA minimums
• You were asked to sign a release quickly
• Your termination followed sick leave, stress leave, or a workplace complaint
• Your employer is alleging “cause” or misconduct
• You are unsure whether your severance offer is legally fair

Because severance entitlements in Ontario are based on common law, not just the Employment Standards Act, many employees are owed significantly more than what is initially offered.

An Ontario employment lawyer can:

• Assess whether your severance offer is reasonable
• Identify legal leverage you may not be aware of
• Communicate with your employer or their lawyer on your behalf
• Help you avoid mistakes that could limit your rights

Importantly, getting advice before you negotiate or sign anything can protect your ability to seek proper compensation.

Need Help Negotiating Your Severance?

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