Negotiating a Severance Package Strategically

Whether you were dismissed for cause, offered a severance package, or constructively dismissed, we can work with you to determine a strategic approach to maximizing  your recovery. That can only be done once we understand your circumstances, and you understand the legal regime.

  • Are you better off with a lump sum or salary and benefit continuance?
  • Should you be looking for new work, and what happens if you find it?
  • Are you entitled to bonuses, commissions, or other variable compensation during the notice period? And what about entitlements that accrued while you were still working?
  • Can you recover your legal costs?
  • Are you entitled to compensation for the manner in which you were dismissed?
  • What if you were harassed or discriminated against –  can you seek damages for that too?
  • What if the company won’t negotiate? And what if they withdraw their original offer?
  • How long will it take, and how much will it cost?

There are many nuances to severance packages that are often overlooked. People tend to focus on how many months they got, ignoring all other aspects of their situation. For example, one individual was convinced that he received a very generous severance package, being six months after he had only been employed for five years. Fortunately, his wife insisted that he speak with an Employment Lawyer, and we explained that since his compensation was based largely on commissions, six months of base salary was actually worth more like two months.

We explain to individuals that severance is intended to be a bridge to your next job, and not a windfall. As a result, if you are successful in finding new employment quickly, your entitlement to compensation from your previous employer will be limited.

We will assess your situation and the most strategic approach. We will also discuss options for settlement. In some cases, a lump sum may be best, whereas in other situations, salary and benefits continuance would be more beneficial.

 And if there is good reason, we may be able to have some of the money paid as general damages, which is not taxable. We also explain that if you collect employment insurance benefits and subsequently settle your claim, you may have to repay some of them.

All of these factors, and others, must be taken into account when determining the best approach for you.

Whatever approach is best, we will work with you to negotiate the best possible package.

We will explain all of these issues and others to you, and discuss the best strategy for your particular situation. We will then negotiate and, if necessary, litigate on your behalf. At each step of the way, we will assess the costs and benefits with you to ensure that we are adopting a rational approach that meets your needs.