jeff@goldsteinlawyers.ca 647-838-6740

Is Your Severance Package Fair?

Many employees that have worked for extensive durations with the same employer are terminated without cause and without warning. We have represented clients that have worked for over 30 years for the same employer. What often amazes me is that those employees often blindly trust their former employer with respect to the severance package offered following termination.

Do not conclude that you will be provided with a fair severance only because an employer has employed you for a long period of time. In fact, the longer one’s duration of service with a company, the greater severance you are likely entitled.

Courts have determined that employees are entitled to a range of severance package – amounting to between 2 weeks per year to 1 month per year worked. Sometimes the amount awarded by a Court is above or below the indicated range. Other time, savvy employers, who have likely consulted with an employment lawyer, include termination clauses in their employment agreements, which restrict an employees’ entitlement on termination to the minimum amount prescribed by the ESA. If this provision is contained in your employment contract, you are likely not entitled to more severance pay, though the term has to be drafted in a specific, unambiguous manner for it to be enforceable.

The company may however not be provided all forms of compensation during the severance period. For instance, many employees may have earned a commission representing a substantial portion of their overall compensation. If the company calculates your severance on your base salary only, you may be short-changed.

There is no obligation in contacting an employment lawyer to review your severance package for free. We are ‘honest lawyers’ (can you believe it!), and we will genuinely advise you if you have a case. We hear about lawyers asking for massive retainers from individuals that have marginal cases. If we do not believe that your case has value for you, we will not take it on.

Please contact an employment lawyer today for a no-obligation consultation at 647-838-6740.

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