By: Stephanie McDonald and Baljinder (Bal) Singh Tiwana
Why Employees Feel Guilty About Negotiating Severance
A severance offer is typically made when an employee is terminated in Ontario.
After years of loyalty to your employer, it’s common to feel uncomfortable, or even guilty about negotiating your severance offer. Many employees hesitate to question the offer. They worry about seeming ungrateful. Many simply want to avoid conflict. They feel a lingering sense of loyalty to their former employer.
But that emotional response may cost you thousands. If you accept a severance package without legal scrutiny, you risk leaving thousands of dollars on the table.
Your Severance Is a Legal Entitlement, Not a Gift
Let’s be clear: your employer is often not doing you a favour. Your severance is not a gratuitous payment or an act of generosity. It’s your legal entitlement. You earned those rights through your employment.
Even if you had a positive working relationship, your employer’s priority is to save money, not to maximize your compensation. Employers often structure severance packages to minimize what they pay. They frequently make an initial offer that reflects what they believe they can pay, not necessarily what you may be legally entitled to receive.
The reality is this, employers do not always act in your best interest. In fact, the first offer you receive is often a lowball figure, structured to meet only the bare minimum required under Ontario law.
But minimum standards are not the full picture.
Don’t Let Pressure Cost You Thousands
You may be entitled to significantly more under common law reasonable notice. This can mean months, or even years, of additional compensation. And here’s the critical point: many termination clauses in employment contracts are unenforceable. They may be vague, ambiguous, or improperly drafted e.g. breach the ESA.
Employers often include termination clauses to limit your entitlements to the minimum required under the Employment Standards Act (ESA). If a court finds that your termination clause is unenforceable, your entitlements may increase significantly.
Your employer will not point this out. Rather, they may present the offer as fair and the only offer they are prepared to make along with a deadline. They may apply pressure to get you to sign quickly. They are counting on you not seeking legal advice.
Don’t fall into that trap.
You are not being difficult by asking questions. Nor are you being disloyal by asserting your rights. You are protecting your financial future.
You should be paid what you are legally entitled to, usually with a reasonable discount to avoid court.
A qualified employment lawyer can assess your situation, determine whether the termination clause is enforceable, and calculate what your claim is truly worth. In many cases, that review alone can dramatically increase your severance.
Conclusion
The bottom line is simple. Employers will often try to save money. Lowball offers are common. Emotions may cloud your judgment. Please don’t let them.
Before you sign anything, get legal advice. Don’t leave any money on the table.
Workplace Sage Legalcan help review your severance offer, identify whether it undermines your legal entitlements, and help you secure the compensation you deserve.
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Learn more about employment law through the articles below:
- Short Service, High Salary: Could You Be Owed More Severance in Ontario?
- Who is entitled to Reasonable Notice, and how is it calculated?
- What Employees Must Know About Without Cause Terminations in Ontario
DISCLAIMER: This article/blog is provided for educational/informational purposes only. This blog does not constitute legal advice. Do not rely on any advice before speaking with a lawyer. This blog does not form a solicitor-client relationship.
