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How To Negotiate Severance: How We Can Help
Process
Our negotiation process begins with a comprehensive case review, analyzing your employment contract, tenure, age, role, and the circumstances of termination to establish a baseline common law entitlement, which often exceeds the statutory minimums by a factor of 3 to 5. We then develop a strategic communication plan, typically advising against signing any release immediately. Listed lawyers draft a formal response to the employer's offer, citing relevant case law and factors like Bardal v. Globe & Mail to justify a higher settlement. We manage all negotiations, aiming to resolve matters efficiently, with many cases reaching a favorable settlement within 4 to 8 weeks of engagement, avoiding the need for litigation.
At a Glance
| Parameter | Reference Value |
|---|---|
| Typical Negotiation Timeline | 4-8 weeks |
| Common Law Entitlement Range | 3-24 months' salary |
| Key Factors Analyzed | Tenure, Age, Position, Job Market |
| Primary Governing Law | Provincial Employment Standards & Common Law |
Local Considerations — Canada
Severance entitlements and negotiation tactics vary significantly across Canada due to distinct provincial employment legislation and regional case law precedents. For instance, notice periods in Ontario are interpreted under the Ontario Employment Standards Act, while in British Columbia, the BC Employment Standards Act applies, each with different minimums. Furthermore, economic conditions in major hubs like Toronto, Vancouver, and Calgary influence what constitutes reasonable notice. Our national practice is adept at navigating these regional legal landscapes, ensuring our strategy is tailored to the specific jurisdiction governing your employment, whether you are in the tech sector in Waterloo or the energy industry in Alberta.
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Standards & Compliance
- Canada Labour Code (for federally regulated employees)
- Ontario Employment Standards Act, 2000
- Common Law Principles of Reasonable Notice
Frequently Asked Questions
What is the first step I should take after receiving a severance offer?
Do not sign anything. The first step is to seek a professional legal review of the offer against your potential common law entitlement, which is almost always significantly higher than the minimums in your employment contract or provincial legislation.
How long do I have to negotiate or challenge a severance package?
Limitation periods vary by province but are typically 2 years from the date of termination for filing a wrongful dismissal lawsuit. However, the strategic negotiation window is much shorter, and immediate action is crucial to preserve leverage.
Can I negotiate severance if I signed a termination clause in my contract?
Yes, many termination clauses are unenforceable if they attempt to contract out of an employee's common law rights. We meticulously review contract language for compliance with current case law, which often provides a basis to negotiate beyond the clause's limits.
How much does a severance negotiation service cost in Canada?
Fees depend on case complexity, the stage of negotiation, and whether litigation becomes necessary. Many cases are handled on a flat-fee or contingency basis for litigation. We provide clear fee structures after an initial case assessment. The best course is to request a specific consultation for a tailored quote.