What to Review in a Severance Package

Most packages state a deadline, but the date alone does not show whether the offer is adequate or whether more time can be requested. Note whether the deadline uses business or calendar days, whether the offer changes after it, and whether there is enough time to obtain advice.

A package may include minimum entitlements under Ontario's Employment Standards Act and additional amounts offered in exchange for a release. Common-law reasonable notice may also matter unless an enforceable employment agreement limits it. The analysis considers factors such as length of service, age, role, and the availability of similar work.

That analysis produces a range, not a promised result. Whether to negotiate depends on the agreement, the facts, the package terms, the deadline, and the practical cost of the next step.

Health, dental, and other benefits may continue for the statutory notice period and may be offered for longer. Confirm each plan's end date and replacement options. Disability coverage deserves separate attention because losing it during a medical leave or pending claim can have consequences beyond the monthly premium.

Whether short-term or long-term incentives continue to be paid through the severance period depends on the plan documents, the employment agreement, and how the package is structured. Equity with unvested tranches requires particular attention.

Check whether a non-disparagement clause is mutual and who it binds. Also look for an agreed reference letter, a neutral reference commitment, or a provision that limits references to specific facts.

The release is what the employer is buying. It should be proportionate to the payment, with carve-outs for statutory entitlements, accrued vacation, and claims that cannot be released at law.