When to Push Back: Signs That Your Employer is Undervaluing Your Severance Package

You’ve just been handed a severance package—and something doesn’t feel right. It might be the vague language, the tight deadline, or the lump sum that seems far too low for your years of service. Trust your instincts. Many Canadian employees are offered less than what they’re legally entitled to when they’re terminated.

In this article, we’ll break down the key signs your employer is undervaluing your termination entitlement—and what you can do about it.

1. The Offer Only Includes Minimum Statutory Entitlements

If your severance package is based solely on employment standards legislation minimums, it's likely far below what you'd get under common law. 

Employment standards legislation sets out the bare minimum notice requirements employers must provide employees upon termination. However, most employees are actually entitled to far greater notice, called common law notice.

Example: 8 weeks' notice after 8 years of service may be legal under ESA, but common law could entitle you to 8+ months.

2. You Were Asked to Sign Immediately

High-pressure tactics, such as giving you only 24–48 hours to sign, are a red flag. Employers know that rushed employees are less likely to negotiate.

Tip: You have the right to request additional time to review your severance package.

3. The Package Ignores Bonus, Commissions, or Benefits

If your total compensation includes more than just your base salary, your severance should reflect that.

Usually termination offers may be missing key legal entitlements such as:

• Annual bonuses

• Commissions

• RRSP or pension contributions

• Health and dental benefits

4. You Were a Long-Term or Senior Employee

Courts generally award more severance to employees with long tenure, senior positions, or specialized roles. If you’ve been with the company for years and are offered only a few weeks' pay, it’s likely inadequate.

5. The Offer Comes With a Release Clause

Most severance offers ask you to waive your right to pursue further claims. If you sign, you may not be able to negotiate or sue later, even if the offer was unfair. Don’t sign unless you’ve reviewed your options first.

How to Push Back—Without a Lawyer

In many cases, you can advocate for yourself—without the high price tag of a lawyer.

SeverEase gives you the tools to:

• Understand what you're legally entitled to

• Draft effective counteroffers

• Negotiate confidently with your employer

• Save thousands in legal fees

Conclusion

If any of these red flags sound familiar, you have every reason to pause, review, and push back. Your severance package should reflect your full value, not just the bare minimum.

At SeverEase, we help Canadians take control of their severance with lawyer-drafted tools made for employees.

Think your severance is too low? Start your negotiation today with SeverEase.

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