Sections marked as location-specific are showing the position in Ontario. Rules change — confirm current deadlines before relying on them.
The two layers of an offer
Most severance offers combine a statutory minimum, which is set by legislation and is not negotiable downwards, with an additional amount the employer has chosen to offer. That second amount is where the discussion usually happens.
| Layer | Where it comes from | Negotiable? |
|---|---|---|
| Statutory minimum | Employment legislation | No — it is a floor |
| Contractual entitlement | Your signed agreement | Only if the clause is unenforceable |
| Common-law notice | Case law, where it applies | Often, and this is the usual focus |
What should be inside the number
Compensation is often more than base salary. An offer that only covers salary may understate the position where other elements formed a real part of your pay.
- Base salary for the notice period
- Bonus or commission that would have been earned
- Benefits continuation, or the cost of replacing them
- Pension or retirement contributions
- Vacation pay accrued and unused
- Car allowance, phone or other regular allowances
The release you are asked to sign
Severance is normally paid in exchange for a release: a promise not to bring claims arising from the employment. Releases are typically broad and final, and they usually cover claims you have not thought about yet.
Terms worth reading closely+
- Confidentiality and non-disparagement obligations
- Any new or restated non-compete or non-solicit clause
- Whether benefits continue and for how long
- How and when the money is paid, and whether it is a lump sum
- Whether the reference wording is agreed
Deadlines in OntarioOntario
Ontario distinguishes statutory termination pay from statutory severance pay, which applies to longer-serving employees at larger employers, and both sit on top of anything agreed. Civil claims are generally subject to a two-year limitation period from discovery; employment standards complaints have a shorter window.
Documents to gather
- The severance offer and draft release
- Employment agreement and any bonus or commission plan
- Pay stubs and the most recent tax slips or forms
- Benefits summary and pension statements
- Vacation balance records
- Any written statement of the reason for the termination
Evidence that carries weight
- Documentation of variable compensation actually paid in prior years
- A contract with no enforceable termination clause
- Written confirmation of length of service and role history
- Evidence of benefits value, where benefits ended abruptly
Want both lists in one printable page?
Common mistakes
- Treating the employer's deadline as a legal deadline
- Counting only base salary and ignoring bonus, benefits and allowances
- Signing before checking whether the termination clause is enforceable
- Accepting new restrictive covenants buried in the release
- Negotiating for months and letting a filing deadline pass
Frequently asked
Is severance taxed?
Severance is generally taxable, and how it is structured can affect the timing of tax. That is a question for a tax professional as well as a legal one.
Can I negotiate a reference?
Reference wording and an agreed announcement are commonly negotiated alongside the money, and they cost the employer little.
What if I am offered continued salary instead of a lump sum?
Salary continuance is common. Check what happens if you find new work during the period, since many offers reduce or end payments at that point.
Assess my situation
Concaso turns what you already know into a structured, confidential report — strengths, weaknesses, missing evidence, and the deadlines that matter. We will start you in the right place based on this guide, in Ontario.
Assess my situationAssessment topics related to this guide
Wrongful dismissal
Best matchYou were let go and the notice or package may be inadequate.
Accommodation / disability
A need for workplace accommodation was refused or mishandled.
Constructive dismissal
Your job changed so fundamentally you may have been forced out.
Restrictive covenant / non-compete
A clause limiting where or how you can work.
Topics in this guide
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Wrongful dismissal
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Constructive Dismissal
When a change to your job is serious enough that the law may treat it as a dismissal — and what to document before you resign.
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Human Rights and Discrimination Complaints
How discrimination and accommodation complaints are usually assessed, where they are filed, and what evidence tends to matter.
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How tenancy disputes move through notices, hearings and orders, what each side normally has to show, and the dates that control everything.
This guide is general information, not legal advice, and Concaso is not a law firm. Reading it does not create a lawyer–client relationship. Deadlines and procedures differ by jurisdiction and change over time — confirm anything you intend to rely on.