Can I negotiate a better severance package in Ontario?
Yes, severance packages in Ontario are almost always negotiable. When an employer offers severance, the initial offer often reflects the statutory minimums under the Employment Standards Act, 2000 (ESA) or slightly above. But if you have not signed a valid termination clause limiting your rights, you may be entitled to common law reasonable notice, which is typically higher.
Factors that influence what you can negotiate include your length of service, your age, your seniority and compensation level, how difficult your position would be to replicate in the job market, and whether there are any aggravating circumstances around the termination (such as allegations the employer cannot fully support, or conduct during the termination process).
Employers generally want a signed release — a document confirming you are settling all claims against them — before paying enhanced severance. Ontario's Employment Standards Act provides a statutory minimum period to consider and revoke signing a release in certain circumstances. You are not obligated to sign before getting legal advice.
A lawyer can assess your entitlements, identify any leverage points, and negotiate on your behalf. The cost of a consultation is usually small relative to the improvement in a negotiated outcome.
Key takeaways
- Initial severance offers often reflect statutory minimums, not your full entitlement.
- Common law reasonable notice is typically higher than ESA minimums.
- Age, seniority, and job replaceability all affect what you can negotiate.
- Do not sign a release before getting legal advice on your entitlements.