Do You Have to Accept the Employer’s First Offer? (Short Answer: No)

You’ve just been let go and handed a severance package. It might feel final—like this is your only option and you have to take it. But here’s the truth: you do not have to accept your employer’s first severance offer. In fact, you probably shouldn’t.

Most first offers are designed to protect the company—not to give you the full compensation you’re entitled to under Canadian law.

Why First Offers Are Usually Low

Employers know that most people won’t negotiate. They also know that many terminated employees are stressed, anxious, or eager to move on—making them more likely to sign right away.

That’s why initial severance offers often:

• Stick to minimums under employment standards legislation

• Leave out bonuses, commissions, or benefits

• Include a tight deadline

• Contain a release clause that waives your right to ask for more later

You Have the Right to Negotiate

Depending on your case and your employment contract, you may be entitled to reasonable notice or pay in lieu under common law, which is often much higher than your statutory minimums under employment standards legislation. For example: After 10 years of service, legislation may entitle you to 8 weeks—but common law could entitle you to 10+ months.

What Happens If You Don’t Sign?

Not signing the first offer doesn’t mean you lose your severance. It means you’re opening the door to a better outcome. You can:

• Ask questions

• Make a counteroffer

• Request time to review

• Get tools and guidance (like SeverEase) to help you respond

Red Flags in First Offers Be cautious if your severance offer includes:  -A short signing deadline (e.g., 24–48 hours)  -No compensation for vacation, bonuses, or benefits  -Language that implies you’re “lucky” to get anything at all  -A sweeping release that prevents you from negotiating further

How SeverEase Helps

You don’t need to hire a lawyer to negotiate better terms. SeverEase equips you with:

• Plain-language severance guides

• Templates to make counteroffers

• Confidence to respond—without fear or pressure

Conclusion

The first offer isn’t your best offer. It’s a starting point—and you have the right to ask for more. Don’t sign away your future for less than you’re owed.

At SeverEase, we give you the knowledge and tools to negotiate severance on your terms.

Think your offer is too low? Learn how to counter with confidence—start here.

Disclaimer: This article is for informational purposes only and does not constitute legal advice.