You can negotiate a severance package in Canada. The amount your employer first offers is not automatically the amount you have to accept.
Before signing anything, find out what you are actually owed, what compensation may be missing and what rights you would give up by accepting the package.
Samfiru Tumarkin LLP helps non-unionized employees in Ontario, Alberta and British Columbia review severance offers and pursue additional compensation when more is owed.
⚠️ Given a deadline to sign your severance offer?
Your employer’s acceptance deadline is not the same as your legal deadline for pursuing severance. Don’t rush into signing a release because the letter gives you only a few days to respond.
On This Page:
- 1. Can You Negotiate Severance?
- 2. How to Negotiate
- 3. What Can You Negotiate?
- 4. How Much More Should You Ask For?
- 5. Signing Deadlines
- 6. Negotiate Yourself or Use a Lawyer?
- 7. Common Questions
Can You Negotiate a Severance Package?
Yes. A severance offer is often the employer’s starting position, not the final amount you are legally entitled to receive.
For many non-unionized employees, severance depends on more than the minimum amounts required by employment standards legislation.
Your full entitlement can be affected by factors such as:
- your age
- length of service
- position and responsibilities
- salary and other compensation
- the availability of comparable employment
- the wording of your employment contract
Start with our guide to severance pay in Canada or use the Severance Pay Calculator to estimate what you could be owed.
How Do You Negotiate a Severance Package?
1. Don’t sign the offer right away
Once you sign a severance release, you can lose the ability to pursue additional compensation.
Read our guide to full and final releases before agreeing to anything.
2. Calculate what you are actually owed
Compare the employer’s offer with your full legal entitlement, not just the minimum amount required by employment standards legislation.
3. Identify what is missing
Check whether the package properly accounts for salary, bonus, commission, benefits and other compensation that should continue through the applicable notice period.
4. Respond with a clear legal position
A strong severance negotiation explains why more compensation is owed. It shouldn’t simply ask the employer for a larger number without a basis for the request.
5. Review the release before settling
Make sure the final agreement accurately reflects what was negotiated and that you understand the claims and rights you are releasing.
💡 You don’t have to threaten a lawsuit to negotiate severance.
Many severance matters are resolved through discussions between the employee, employer and their lawyers without going to court.
What Can You Negotiate in a Severance Package?
Severance negotiations can involve more than the number of weeks or months of salary.
Depending on your compensation and circumstances, you may need to address:
- Salary: additional notice or pay in lieu of notice
- Bonuses: amounts that would have been earned during the notice period
- Commissions: unpaid or future commission entitlements
- Benefits: continuation of health, dental or other coverage
- Equity: stock options, RSUs or other incentive compensation
- Reference terms: what the employer will say to future employers
- Payment structure: lump-sum or salary-continuance terms
- Release wording: confidentiality, non-disparagement and other continuing obligations
The goal isn’t to negotiate every line. Focus on the terms that materially affect your compensation, future employment and legal rights.
How Much More Severance Should You Ask For?
There is no standard percentage or number of extra weeks that every employee should ask for.
The right amount depends on the difference between what your employer offered and what you are legally entitled to receive.
For example, asking for “another four weeks” simply because it sounds reasonable can leave significant compensation on the table if your actual compensation is several months higher. Severance can be as much as 24 months’ pay.
⚠️ Don’t negotiate against yourself.
Before proposing a number, ask our team to determine what your claim is worth. An employee who asks for less than their legal rights can make it harder to recover the full amount later.
If the amount offered is far below what you are owed, the termination may amount to wrongful dismissal.
Do You Have to Accept a Severance Package by the Employer’s Deadline?
No. The deadline in the severance letter does not erase your legal rights.
Your employer can set a deadline for accepting a particular settlement offer. If you don’t accept it, the employer may withdraw or change that offer.
But that deadline is separate from the legal limitation period for pursuing a wrongful dismissal or severance claim.
⚠️ A short deadline should prompt a review, not a rushed signature.
Get advice while the offer is still open and before signing away your rights.
Should You Negotiate Severance Yourself or Use a Lawyer?
You can negotiate your own severance package, but the first step should be understanding what you are owed.
Legal advice becomes especially important when:
- you have several years of service
- you are a manager, executive or specialized employee
- your package excludes bonus, commission or benefits
- your employer relies on an employment contract to limit severance
- you were fired while on medical, parental or another protected leave
- your employer alleges misconduct or cause
- you are being asked to sign a broad release
We recommend you talk to an employment lawyer at Samfiru Tumarkin LLP first to get a thorough understanding of your options before trying to negotiate on your own.
For province-specific guidance, see our pages on negotiating severance in Ontario and negotiating severance in Alberta.
What about British Columbia?
BC employment standards provide minimum notice or compensation based on length of service, but non-unionized employees can have additional rights beyond those minimums. Have the package reviewed before signing a release.
Severance Negotiation: FAQs
Can you negotiate severance after being fired?
Yes. The period after termination is when most severance negotiations happen.
What happens if you don’t sign the severance package?
You don’t lose your legal severance rights simply because you refuse to sign the employer’s release. The employer may withdraw any additional settlement amount it offered in exchange for signing.
Can an employer reduce its severance offer if you negotiate?
An employer can change or withdraw an enhanced settlement offer before it is accepted. That doesn’t remove amounts you are legally entitled to receive.
Can you negotiate severance after the deadline?
Yes. The employer may say its original offer has expired, but your underlying legal claim doesn’t disappear because an internal acceptance date passed.
Should you ask for double the severance offer?
Don’t use an arbitrary multiplier. Ask for compensation based on your actual legal entitlement and the parts of the employer’s offer that are missing.
Can severance negotiations include a reference?
Yes. Reference wording can form part of a settlement and should be addressed before the agreement is signed.
What if you’re unionized?
Your collective agreement and grievance process govern termination and severance disputes. Contact your union. Samfiru Tumarkin LLP’s employment law team does not assist with unionized workplace disputes.
Don’t Sign Your Severance Package Before You Know What It’s Worth.
Your employer’s first offer isn’t automatically your full entitlement, and a short signing deadline doesn’t change your legal rights.
The employment lawyers at Samfiru Tumarkin LLP help non-unionized employees in Ontario, Alberta and British Columbia review severance packages, negotiate improved offers and pursue the compensation they are owed.
Before you sign, always check first.
➡️ Have Your Severance Package Reviewed or call 1-855-821-5900.