Negotiating a Better Severance Package
How to evaluate an offer and push for what you are owed under Canadian law.
Content last verified against official statutes: March 30, 2026
Context and Setup
You were terminated and offered a severance package of 4 weeks pay plus continuation of benefits for one month. You have worked at the company for 8 years, are in a senior role, and are 45 years old. You have consulted a lawyer who confirmed the offer is significantly below what you would likely receive at common law. You also have active complaints that were not addressed before termination. Your lawyer has advised you on a counteroffer.
The Conversation
You (by email or through lawyer)
Thank you for the severance offer dated [Date]. After reviewing the offer with legal counsel, I am writing to discuss the terms.
Always negotiate in writing. This creates a clear record and prevents misquotation. Your lawyer may handle this communication directly. If you are negotiating yourself, keep the tone professional and factual.
You
The offer of 4 weeks does not reflect the common law factors applicable to my situation: 8 years of continuous service, my senior role and responsibilities, my age (45), and the limited availability of comparable positions in my field. Common law jurisprudence for employees in my position typically supports a range of 8 to 12 months of notice.
Common law notice is calculated based on the Bardal factors: age, length of service, character of employment, and availability of similar employment. A 4-week offer for an 8-year senior employee is far below the expected range.
You
Additionally, I note that my termination followed unresolved complaints filed on [dates], which I have raised with [CIRB/CHRC/OPC]. The termination of an employee with active complaints creates significant legal exposure for the employer under CLC s.246.1.
You are not threatening litigation. You are stating facts that the employer's legal team already knows. This creates settlement leverage.
You
I am seeking the following: [X months] of salary continuation, continuation of full benefits for [X months], payment of accrued and unused vacation, a neutral or positive reference letter, a revised termination letter that does not reference cause, and withdrawal of any non-compete or non-solicitation provisions.
Your counteroffer should be specific and justified. Your lawyer will help you determine the right numbers based on comparable cases.
Employer (through HR or their lawyer)
We can improve the offer to [X weeks/months] with [modified terms].
You
I appreciate the revised offer. I will review it with my counsel and respond by [date].
Take time to review each revised offer carefully. Counter-offers can go back and forth several times. Do not feel pressured to accept the first improvement. Each revision should be reviewed with your lawyer.
Real Court Decision
In Amer v. Shaw Communications Canada Inc. (2023 FCA 237), the tribunal awarded Full Indemnity Costs. Read the full case →
Key Negotiation Principles
- Never sign under time pressure. Request at least 7 to 14 days to review any offer.
- The first offer is almost never the best offer. Employers expect negotiation.
- Your active complaints create leverage. The employer may prefer a generous settlement to the cost and risk of CIRB, CHRC, or court proceedings.
- Consider the full package: salary continuation, benefits, pension, reference letter, non-disparagement, non-compete removal, and outplacement services.
- Tax implications matter: lump sums are taxed differently than salary continuation. Your lawyer or accountant can advise.
- Get the final agreement in writing and have your lawyer review it before signing.
- Once you sign a full release, you typically cannot pursue additional claims. Make sure all claims are accounted for in the settlement.
Escalation if Negotiation Fails
Key Statutes
When Should You Contact a Lawyer?
This platform is designed to help you build your case independently — collecting evidence, documenting incidents, writing complaints in compliance language, and navigating the internal HR process. Many employees can handle these steps without a lawyer.
The most effective time to engage a lawyer is after you have completed the internal process and your employer has failed to resolve your complaint. At that point, a lawyer can review your complete file — your timeline, evidence, complaint, and the employer's response — and provide strategic advice before you file with an external body such as the CIRB, CHRC, or OPC.
By doing the groundwork yourself, your consultation becomes a focused strategic review rather than a costly fact-gathering session. This approach has been validated by employment lawyers who reviewed files prepared using this methodology and found the documentation thorough with nothing to add.
Did this help you?
MyWorkRights.ca is free for every Canadian worker. If this information helped you, consider supporting the project. Every dollar goes toward keeping this site updated and reaching more employees who need it.
Powered by Stripe
Cite This Page
MyWorkRights.ca, "Negotiating a Better Severance Package," accessed 2026-04-01, https://myworkrights.ca/scenarios/severance-negotiation
Written by the MyWorkRights.ca team, based on direct experience navigating the CIRB, OPC, and CHRC complaint processes and 500+ hours of employment law research.