Leaders in Law News

Severance Negotiations in Canada: A Guide to Securing Your Future

Negotiating a severance package is challenging even in the best of times. Whether you’re facing a layoff, termination, or voluntary departure from your job, understanding how to negotiate a fair severance package is crucial to safeguarding your financial security. In Canada, according to Stacey R. Ball, employment lawyer, employees are entitled to certain rights and benefits upon termination, but it’s essential to advocate for yourself to ensure you receive what you deserve.

Know Your Rights

Before entering negotiations, it’s important to understand your rights as an employee in Canada. Employment standards vary by province, but generally, employees are entitled to notice or pay in lieu of notice upon termination. The amount of notice or pay depends on factors such as length of service and reason for termination. Additionally, employees may be entitled to severance pay if they meet certain criteria outlined in provincial legislation.

Assess Your Situation

Evaluate your employment contract, employee handbook, and any relevant documents to understand the terms of your termination and any entitlements you may have. Consider factors such as your length of service, salary, position, and the circumstances surrounding your departure. This information will help you determine what you’re entitled to and what you should negotiate for.

Seek Legal Advice

Hiring an employment lawyer is one of the best investments you can make when negotiating a severance package. A lawyer can provide valuable guidance, review your situation, and advise you on your rights and entitlements. They can also help you navigate complex legal language, negotiate on your behalf, and ensure you receive a fair settlement. While it may seem like an additional expense, the expertise of a lawyer can ultimately save you time, money, and stress in the long run.

Prepare Your Proposal

Before entering negotiations, prepare a clear and reasonable proposal outlining what you believe you’re entitled to. This may include factors such as severance pay, continuation of benefits, job placement assistance, and other considerations. Back up your proposal with evidence such as industry standards, your contributions to the company, and any mitigating factors that justify your request.

Stay Professional

Maintain a professional demeanor throughout the negotiation process. Keep communication concise, respectful, and focused on finding a mutually beneficial solution. Avoid becoming emotional or confrontational, as this can hinder productive discussions and sour relationships with your employer.

Consider Alternative Solutions

Be open to alternative solutions that may benefit both parties. For example, you could negotiate for additional training or career counseling to help you transition to a new role. Alternatively, you may agree to a longer notice period in exchange for certain benefits or considerations. By remaining flexible and creative, you may be able to reach a settlement that meets your needs and satisfies your employer’s interests.

Document Everything

Keep detailed records of all communication, including emails, letters, and meeting notes. Documenting the negotiation process will help protect your interests and provide evidence in case of any disputes or misunderstandings. Be sure to review any agreements carefully before signing and seek legal advice if needed.


Negotiating a severance package in Canada requires careful preparation, knowledge of your rights, and effective communication skills. By seeking legal advice, preparing a clear proposal, and maintaining professionalism throughout the process, you can increase your chances of securing a fair settlement that provides financial security and peace of mind for the future.