Can My Employer Rescind My Severance Offer If I Try to Negotiate?

SeverEase
Jun 11
3 min read

Updated: Nov 17

You’ve just been let go, you’re staring at a severance package, and you’re wondering:

“If I try to negotiate… could they take it all back?”

This is probably our most-asked question as employment lawyers.

The short answer is—not quite. Let’s break down why, and what to watch for.

1. Your Statutory Minimums Are Protected by Law

No matter what your employer says, they are legally required to provide at least the minimum notice or severance pay required by employment standards legislation (either provincial or federal, depending on your job) if your termination was without cause. This is a non-negotiable legal obligation.

Whether or not you negotiate your package, your employer must provide your statutory minimums.

So even if a negotiation goes sideways or an offer is pulled, you are still entitled to those baseline protections.

2. The Enhanced Severance Offer

Now, here’s the nuance: many employers offer more than the legal minimum, often called an enhanced severance package. This is typically in exchange for you signing a Full and Final Release, giving up the right to sue or make future claims.

And technically, yes—an employer can revoke an enhanced offer before it’s signed, for any reason (or no reason at all). In fact, your former employer can send you an email right now advising you that they've decided to rescind their additional offer.

But in practice? This is exceptionally and extraordinarily rare.

If an employer was willing to give you that package at termination, chances are they will still willing to provide this even after you’ve asked a few reasonable questions or made a counteroffer.

Most employers expect some negotiation. They’re just hoping you won’t do it.

3. Your Realistic Worst-Case Scenario

The vast majority of the time, your realistic “worst” case scenario is that your former employer says:

“Sorry, we can't increase the termination offer.”

Even if that’s the case, you’ll still walk away knowing you explored every option and you're leaving nothing on the table.

And remember: even experienced lawyers can’t guarantee a better result. The value lies in asking the right questions and making informed choices.

4. What If They Do Threaten to Revoke It?

Sometimes, employers use pressure tactics. You might hear:

“If you don’t sign by Friday, we’re withdrawing the offer.” “This is our best and final—we won’t be negotiating.” “If you come back with changes, we’ll rescind everything.”

This kind of language is often used to intimidate and discourage negotiation—but remember:

They still owe you your statutory minimums
Most employers want to avoid a drawn out legal battle
Pulling a severance offer because you advocated for yourself could reflect poorly on them—and even backfire

If your employer genuinely threatens to revoke an offer for asking questions, it may be a red flag about the fairness of the package in the first place.

5. How to Protect Yourself

If you’re worried about losing your offer by negotiating, follow these steps to keep the conversation constructive and low-risk:

Be professional and respectful: Don’t make it personal or emotional.
Know what you’re entitled to: Use SeverEase's Severance Negotiator to compare your offer against what’s reasonable under Canadian employment law.
Document everything: Keep written records of emails, deadlines, and package terms.
Use strategic language: Use SeverEase custom response letters and guidance to help you speak your employer’s language.