Saad Mirza
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Unfairly treated or fired at work?
April 3, 2025
How to Ask for Severance Pay When Fired
Losing a job is a life-altering experience that often leaves employees feeling uncertain about their next steps. One of the most pressing concerns is financial stability, and this is where severance pay can play a critical role.
Unfortunately, many employees are unsure of how to ask for severance pay or even whether they’re entitled to it.
What Is Severance Pay and How Do You Ask for It?
Severance pay is compensation provided by an employer when your employment ends, typically without cause. It’s meant to ease the financial burden while you transition to new opportunities. While not all employers are legally required to provide severance, it’s often included in employment contracts or offered as a gesture of goodwill.
If you’ve been fired and severance isn’t mentioned, don’t hesitate to ask. Here’s how:
1. Timing Is Everything: Request a meeting with your employer or HR representative shortly after your termination meeting. This ensures the conversation happens while details are still fresh.
2. Be Prepared: Review your employment contract, offer letter, or employee handbook for any clauses about severance pay. If you suspect you’re entitled to severance but it wasn’t offered, bring this documentation with you.
3. Stay Professional: Approach the conversation calmly and respectfully. For example, one of our clients successfully secured additional severance by framing their request as a discussion about fairness rather than a demand.
4. Seek Legal Advice: If you’re unsure of your rights or how to approach the conversation, consult an employment lawyer.
Do You Get Severance Pay If You’re Fired?
A common misconception is that severance pay is only for layoffs, but this isn’t true in Canada. Whether you’re entitled depends on several factors:
• Termination Without Cause: If you were let go without cause (e.g., due to restructuring), you’re likely entitled to severance under provincial laws or common law.
• Termination With Cause: If your employer claims “just cause” (e.g., misconduct), they may not owe you severance. However, we’ve seen cases where employers wrongfully claim cause to avoid paying severance—always consult legal counsel if this happens.
For instance, we recently helped a client who was terminated without cause after 15 years of service negotiate a package far beyond the statutory minimums by leveraging their long tenure and specialized role.
Should You Negotiate Your Severance Package?
Absolutely! Employers often offer the bare minimum in severance packages, hoping employees will accept without question. Negotiating can lead to:
• Higher Compensation: Additional weeks or months of pay.
• Extended Benefits: Continued health insurance or pension contributions.
• Better Terms: Non-disparagement clauses or improved references.
One of our client was initially offered eight weeks of severance but negotiated up to 16 weeks plus extended health benefits by identifying gaps in their employer’s initial offer.
Common Reasons to Negotiate Severance
You should consider negotiating if:
• The offer seems unequal compared to colleagues in similar roles.
• The agreement includes unclear or unfavorable clauses.
• You need additional support, such as extended benefits or outplacement services.
• You want assurances like a glowing reference or non-disparagement clause.
For example, we assisted an executive who was offered a standard package despite their leadership role.
By highlighting their unique contributions and potential litigation risks for the employer, we secured an enhanced package that reflected their seniority.
The Ideal Way to Ask for Severance
Here’s a step-by-step guide:
1. Request a Meeting: Politely ask HR or your manager for time to discuss your termination terms.
2. Present Your Case: Reference your contract and explain why you believe additional compensation is warranted.
3. Stay Professional: Avoid emotional arguments; focus on facts and fairness.
4. Engage Legal Help: A lawyer can draft letters or negotiate directly on your behalf if needed.
Negotiating Severance When Laid Of
Negotiations during layoffs differ slightly since employers often offer packages upfront:
• Review Carefully: Don’t rush—most agreements allow time for review.
• Ask Questions: Clarify terms like benefits continuation or stock options.
• Leverage Legal Support: If the offer seems low, legal advice can help identify areas for improvement.
We recently worked with an employee laid off during a company downsizing who initially accepted their package but later realized it didn’t include accrued vacation pay. After our intervention, they received full compensation.
How Is Severance Pay Calculated?
In Canada, severance pay is typically calculated based on:
1. Length of service (e.g., one week per year under statutory rules).
2. Salary and benefits at termination.
3. Factors like age and re-employability under common law.
For example:
An employee earning $1,000 per week with 10 years of service might receive $10,000 under statutory rules but could be entitled to much more under common law—up to 24 months’ pay depending on circumstances.
Asking for severance pay can feel daunting, but understanding your rights and options makes all the difference. Whether you’re negotiating directly with your employer or seeking legal representation, remember that fair compensation is not just about money—it’s about securing stability during a challenging time.
Author: Saad Mirza
I’m Saad Mirza, the founder of Thrive Law, a employment law firm dedicated to helping employees across Ontario navigate challenging job terminations and workplace issues.