Severance pay is compensation your employer may provide when your employment ends. It’s designed to help bridge the gap between losing your job and finding new employment.
Severance pay includes:
- Notice pay or pay in lieu of notice
- Continued benefits during notice period
- Unused vacation pay
- Sometimes additional severance based on years of service
Important: You’re only entitled to severance if fired without cause. Termination for cause (serious misconduct) typically doesn’t include severance pay.
When You're Entitled to Severance Pay
Employment Standards Minimums
Every Canadian province guarantees minimum severance:
Ontario example:
- 1 week notice per year worked (maximum 8 weeks)
- Plus severance pay: 1 week per year for eligible employees
Other provinces:
- Similar minimums ranging from 1-8 weeks based on service length
Common Law Reasonable Notice
Often much more generous than minimums:
- 2-5 years service: 2-6 months pay
- 6-10 years service: 6-10 months pay
- 10+ years service: 10-24+ months pay
Factors affecting amount:
- Your age
- Length of service
- Position level
- Difficulty finding similar work
Many employees are unsure about their severance amount, here you can calculate your severance pay If you believe your payout is too low, legal services for severance negotiations can help you fight for a fair settlement.
How to Ask for Severance Pay: Step-by-Step
Step 1: Stay Calm and Professional
During the termination meeting:
- Listen carefully to what you’re being offered
- Don’t sign anything immediately
- Ask for details in writing
- Request time to review the offer
What to say: “I’d like to review this offer carefully. Can you provide the details in writing? I’ll need a few days to consider everything.”
Step 2: Ask Key Questions
Important questions to ask:
- “What severance package am I being offered?”
- “How was this amount calculated?”
- “Will my benefits continue during the notice period?”
- “When will I receive my final pay and vacation pay?”
- “Can I have time to review this with a lawyer?”
Don’t ask:
- Why you’re being fired (focus on severance)
- For your job back
- Emotional questions about fairness
Step 3: Get Everything in Writing
Request written confirmation of:
- Severance amount offered
- Notice period length
- Benefit continuation details
- Payment timeline
- Any conditions or requirements
Example email: “Thank you for meeting with me today. Could you please send me written details of the severance package discussed, including the amount, payment schedule, and benefit continuation? I’d appreciate having this information to review properly.”
Download A Sample of Severance Request Letter
Step 4: Calculate What You're Actually Entitled To
Before negotiating, determine:
- Employment standards minimums for your situation
- Reasonable common law notice based on your circumstances
- Value of continued benefits during notice period
- Any bonus or commission entitlements
Example calculation:
- Employee: 5 years service, $60,000 salary, age 40
- ESA minimum: 5 weeks ($5,769)
- Reasonable notice: 5-6 months ($25,000-$30,000)
Step 5: Make Your Request
If the offer is too low:
Written request example: “After reviewing the severance offer, I believe I may be entitled to additional compensation. Based on my 5 years of service and industry standards, I’d like to discuss a severance package of [X months] notice. Could we schedule a meeting to discuss this further?”
Key points to include:
- Your years of service
- Your contributions to the company
- Industry standards for similar positions
- Your age and difficulty finding new employment
Step 6: Negotiate Professionally
Negotiation tactics:
- Present facts, not emotions
- Reference comparable situations
- Be prepared to justify your request
- Consider non-monetary benefits too
What you can negotiate:
- Length of notice period
- Benefit continuation
- Reference letter terms
- Job search assistance
- Non-compete clause modifications
Final Thought
Asking for severance pay is not asking for a favour—it’s about securing what you are legally owed. Being informed and prepared ensures you leave on fair terms and with financial support during your transition.
