How to Ask for Severance Pay When Fired

Most people who get fired never ask for more than what they’re handed. They receive a letter, a number, and a deadline — and they sign. What they don’t realize is that the first offer is almost never the final one.

Asking for severance pay — or asking for more than what you’ve been offered — is not aggressive. It is not ungrateful. It is your legal right, and in Ontario, it is often worth far more than most employees expect.

Here is how to do it.

Start By Saying Nothing — At Least For Now

The moment you are told you are being let go, your instinct might be to respond, to ask questions, or to negotiate on the spot. Resist that instinct.

You are not required to respond immediately to any severance offer. Ontario courts have consistently held that employees are entitled to a reasonable amount of time to consider an offer and seek legal advice. So when your employer hands you a package, the most powerful thing you can say is simply:

“Thank you. I will review this and get back to you.”

That’s it. No anger, no negotiation, no signature. Just time.

Understand What You're Actually Owed Before You Ask For Anything

You cannot negotiate effectively without knowing your baseline. In Ontario, your entitlements on termination come from two places: the Employment Standards Act, 2000 (ESA) and the common law.

The ESA sets the floor — typically one week of notice per year of service, up to eight weeks, plus severance pay of up to 26 weeks if you’ve worked five or more years at a company with a payroll over $2.5 million. But the common law often goes much further.

Take someone like David — a 47-year-old marketing director who worked at a tech company for nine years before being laid off. His employer offered him eight weeks of pay. Under the ESA, that was technically compliant. But based on his age, seniority, and the specialized nature of his role, a lawyer assessed his common law entitlement at closer to 14 months. He negotiated and settled at 11 months. He nearly left 10 months of salary on the table by almost signing the first offer.

Write a Counter-Proposal — Calmly and In Writing

Once you understand what you’re owed, put your response in writing. A well-crafted counter-proposal does three things: it acknowledges the offer professionally, it states what you believe you are entitled to and why, and it invites a resolution without threatening litigation upfront.

It might sound something like this:

“Thank you for providing the separation package. After reviewing it and obtaining independent legal advice, I believe my entitlements under Ontario’s common law — taking into account my years of service, seniority, age, and the nature of my role — support a notice period closer to [X months]. I am hopeful we can resolve this fairly and without the need for legal proceedings.”

That tone matters. Employers are far more likely to negotiate when the conversation feels professional rather than combative.

Don't Forget the Pieces Most People Miss

Severance is not just about weeks of salary. When you ask, make sure you are accounting for everything:

Bonuses that were near-earned at the time of termination do not simply disappear. If your annual bonus was three months away, courts have held you may still be entitled to a pro-rated portion. RSUs and stock options that would have vested during your notice period are also compensable — and for tech workers especially, this can be the largest single component of a claim. Benefits continuation, vacation pay, and car allowances are part of the picture too.

One client, a senior software engineer, initially focused entirely on her base salary when reviewing her offer. It was only after speaking to a lawyer that she realized the RSUs scheduled to vest over the following eight months — which she would have received had she been given proper notice — were worth more than her base severance combined.

Know When to Get a Lawyer Involved

If your employer refuses to move, or if the gap between their offer and your entitlement is significant, it is time to have a lawyer write the letter instead.

A formal demand letter from an employment lawyer carries considerably more weight than a personal email. It signals that you understand your rights, that you are prepared to pursue them, and that you would prefer to resolve the matter now rather than in a courtroom. Most employers — especially large ones — prefer to settle than litigate.

The cost of that letter is almost always recovered in the improved settlement.

My Last Suggestion

Asking for severance pay is not confrontational — it is a negotiation, and it is one you are entitled to have. The key is to slow down, get informed, put your position in writing professionally, and know when to bring in support.

You worked for what you’re owed. Ask for it.

Saad Mirza

About the Author

Saad Mirza

Hi! beautiful people. I’m an employment lawyer. I help workers across Ontario stand up for their rights. Hope this blog helped—stick around for more.

Follow Us

COPYRIGHT © 2025–2026 All Rights Reserved by Thrive Law