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Forgot Password. Severance and early retirement packages are hot topics during an economic downturn. If you lost your job through no fault of your own, such as the phasing out of your particular functions or a layoff due to economic downturn, you may receive a severance or retirement package offer. Companies offer these packages to ease the financial hardship caused by losing your job, but also as a way to avoid potential litigation, because you give up your rights to sue when you accept such an offer. No law exists to force companies to offer financial packages to fired or laid-off employees.

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However, many companies include some sort of package in your employment contract or their policy manual. Your employer may also offer you a financial package if it had a good relationship with you or to encourage you to give up your legal rights. If you lose your job due to misconduct, you will rarely, if ever, be offered a severance or retirement package. Severance is a financial offer that is generally made up of cash up-front as well as some continuation of benefits for a specific period of time.

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You may be able to negotiate with your employer, but generally, the severance offer will already have been crafted by the time you're laid off. A typical cash offer is one week of pay for each year of service. Benefits that may be extended include medical and dental insurance for a few months, and the services of a career consultant to help you with crafting a resume, interviewing and other job-seeking skills. If you're old enough to qualify for some form of reduced retirement benefits, a company wishing to lay you off may offer you early retirement.

You may be giving up your rights without even knowing it. Employers often count on employees being unable to properly and effectively negotiate a severance pay at the time of termination.

What To Expect in a Severance Package in Canada

This can be an important and challenging time in your life. Your severance pay could affect not only your financial future, but also your family's current financial stability. Your employers may not even take you seriously until you have an employment law firm on your side, such as Bisnar Chase. Having an experienced attorney will let your employer know that you are serious about being treated in a fair and equitable manner. If you have been terminated or laid of at your place of work and you feel your employer did not provide you with adequate severance pay to reflect your wages and benefits, our California employment law attorneys may be able to help you.

Call us now at for your free case evaluation. It is common for employers to low-ball employees with a poor severance pay counting on shocked employees to quickly accept what they get and move on.


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In addition, companies also require employees to sign agreements and release from claims to receive severance pay. These documents basically ask workers to sign off their legal rights to sue, to work for a competitor or even prevent them from collecting unemployment. At Bisnar Chase, our skilled employment attorneys utilize their superior negotiation skills to help clients secure a fair severance pay that will hopefully give them a much-needed fresh start.

If you have been wrongfully terminated or have been the victim of harassment, discrimination, retaliation or a hostile work environment, our legal team will fight for your rights and help ensure that you are compensated in a way that reflects your time and work that you put into your former place of employment.


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  • A knowledgeable severance pay lawyer will be able to investigate your case and establish whether you have a legal claim against your employer for discrimination, retaliation or wrongful termination. An attorney will also be able to assess the severance pay you have received including the financial terms of your pay to determine if it is in fact fair and accurate.

    Your lawyer will be able to directly negotiate with your employer or help you with background information and pointers so you can secure the best severance pay. Your attorney can properly analyze the terms of your severance agreement and explain to you the benefits and pitfalls of accepting the offer that your employer has offered.

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    What is important to understand is that a severance agreement is a legal document. Do not sign it until you understand the terms and their implications. California is an at-will employment state.


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    • What this means is that an employer can terminate employment for no reason at all, unless that reason does not have its basis in discrimination or retaliation. While there is no specific contractual obligation or an employment policy, California employers are not required by law to provide severance pay. However, many employers do offer a severance package in exchange for the employee's agreement not to sue.

      There are many factors that could affect the amount of money or level of benefits that you could get as part of your severance pay. Here are just some of the most common factors:. The amount of severance pay your employer offers is non-negotiable, however, an employee may be able to negotiate for other non-monetary benefits such as continued medical and dental benefits for a specified time, a favorable letter of reference, retention of certain company property such as a cell phone or laptop or continued funding for pursuing education.

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      It is also important that employees understand how their severance pay will affect their ability to receive unemployment benefits. For example, severance paid as a lump sum will not affect the employee's right to unemployment benefits, however, if it is paid out bi-weekly as if the employee is still receiving a paycheck, it may delay the employee's ability to collect unemployment benefits. It is crucial to be mindful of this information when you negotiate your severance pay with your employer.

      Usually, as part of the severance agreement, employers will ask the employee to agree not to file any claims or lawsuits. Meanwhile, Torstar announced it will close three of the seven daily newspapers and will be cutting 46 jobs. Many people have misconceptions when it comes to layoffs, and generally equate a "layoff" and "termination" with the same meaning.

      You’re not guaranteed to get it, but it’s always worth asking.

      In law, they are very distinct concepts. A temporary layoff is when an employer temporarily cuts back or ceases an employee's employment with the understanding that the employee will be recalled within a certain period of time.

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      In Ontario, a temporary layoff can last up to 13 weeks in a consecutive week period. If an employee is laid off for longer than this period, they are deemed to have been terminated. If an employee is laid off with no expectation of being recalled, or is flat out dismissed from their job, they may be entitled to payment pursuant to the common law.

      The amount of money a dismissed employee is entitled to depends on their age, years of service, character of employment what kind of job and duties they held , and availability of alternate work. If you have been laid off or terminated, consult an experienced employment lawyer to determine what your rights are. You can be entitled to significant payment from your previous employer. The practice from employers that we have noticed over years of experience is that they will make a low ball offer to their staff upon termination.