Losing your job can be overwhelming, and one of the most critical aspects of your departure is your severance package. While negotiating severance terms on your own may seem like a way to save money, doing so without legal representation comes with significant risks. Employers often present offers that may not fully reflect what you are entitled to under Ontario law—and without proper guidance, you could unknowingly accept less than you deserve.

This article explores what a severance package includes, what’s negotiable, and the dangers of negotiating on your own without the support of a severance lawyer.

What Is a Severance Package?

A severance package is the compensation and benefits an employer offers when terminating an employee. It may include:

✔ Severance Pay – Compensation based on your salary and length of service
✔ Benefit Continuation – Ongoing health, dental, or disability coverage
✔ Vacation Pay & Bonuses – Payout of unused vacation days or outstanding bonuses
✔ Outplacement Support – Assistance with finding new employment

The exact terms of a severance package vary based on factors such as employment agreements, years of service, and the employer’s legal obligations. Many employees believe they must accept the initial offer, but in reality, severance packages are often negotiable.

While you can negotiate on your own, failing to involve a severance lawyer could cost you thousands of dollars—or more than just money.

Six Risks of Negotiating Your Own Severance Package

1. Accepting Less Than You Are Entitled To

One of the biggest risks of negotiating your severance pay without legal guidance is not knowing what you are truly entitled to under Ontario law. Employers may lowball their offer or misrepresent your legal rights, hoping you will accept it quickly.

A severance lawyer evaluates your case based on:

• Employment Standards Act (ESA) requirements
• Common law entitlements (for non-unionized employees)
• The circumstances of your termination (wrongful dismissal, bad faith, etc.)

Without legal insight, you risk walking away with significantly less than you could have received.

2. Accidentally Waiving Your Rights

Employers often require employees to sign a release when accepting a severance package, which means you give up your right to take legal action. This could prevent you from:

✔ Claiming additional severance under common law
✔ Filing a wrongful dismissal claim
✔ Seeking damages for bad faith termination

A severance lawyer reviews these documents to ensure you’re not giving up critical rights that could lead to a higher payout.

3. Overlooking Hidden Benefits

Many employees focus only on the severance pay amount and overlook key benefits that should also be negotiated, such as:

• Health and dental coverage extensions
• Stock options or RSUs
• Commissions and performance bonuses
• Pension contributions

A severance lawyer ensures that your employer accounts for all financial and non-monetary benefits in the final severance agreement.

4. Misunderstanding Legal Clauses That Could Restrict Your Career

Severance agreements often contain restrictive clauses, including:

• Non-Compete Agreements – Preventing you from working in the same industry
• Non-Solicitation Agreements – Stopping you from reaching out to former clients
• Confidentiality Clauses – Limiting your ability to discuss your termination

Signing an agreement with restrictive clauses could severely impact your future career opportunities. A severance lawyer will negotiate fairer terms to protect your professional future.

5. Losing Leverage Against Your Employer

Without legal representation, negotiating with an employer can feel like an uphill battle. Employers often assume that employees lack knowledge of employment laws and may refuse to improve an offer.

A severance lawyer provides strong legal leverage, ensuring:

✔ Your case is taken seriously
✔ Your employer cannot pressure you into accepting less
✔ Negotiations are handled professionally and strategically

A lawyer levels the playing field and ensures you aren’t at a disadvantage.

6. Turning a Negotiation Into a Legal Dispute

Severance negotiations can become contentious, especially if an employer feels you are demanding too much. Without legal guidance, you risk escalating the situation, leading to:

• Retaliation from the employer
• Legal disputes or denied severance offers
• More stress and financial strain

A severance lawyer acts as an intermediary, handling negotiations tactfully and effectively, reducing the risk of disputes.

How a Severance Lawyer Can Help

Hiring a severance lawyer can make a substantial financial difference in your final payout. They provide:

✔ Accurate severance evaluations based on Ontario employment law
✔ Negotiation power to secure the best possible compensation
✔ Protection from unfair clauses that limit your future opportunities
✔ Legal clarity so you can make informed decisions

In many cases, the increased severance package far outweighs the legal costs—meaning you leave with more money and better terms than if you negotiated alone.

Final Thoughts: Don’t Take the Risk—Get Legal Guidance

Negotiating your own severance package without legal representation can be a costly mistake. From accepting too little to unknowingly waiving your rights, the risks outweigh the benefits.

If your employment has ended, don’t face your employer alone. A severance lawyer ensures you receive what you are entitled to under Ontario law, maximizing your compensation and protecting your future.

Before signing anything, consult with a severance lawyer today.

Contact Achkar Law today for a confidential consultation:

• Phone: 1 (800) 771-7882
• Email: [email protected]