Severance Termination Packages


As an employer, you may be faced with the need to terminate an employee’s employment. In devising a termination letter or a ‘severance package’ you will need to ensure that you have complied with the Employment Standards Act, 2000, or if your business is federally regulated, the Canada Labour Code. In addition, if the termination is on a without-cause basis, unless there is a contract in place limiting the employee’s notice or pay in lieu thereof to only that required by employment legislation, you will need to consider whether the employee may assert wrongful dismissal at a later date, which may implicate a much larger period of notice or pay in lieu thereof.


Stewart Esten Law Firm can help you create a termination plan and documentation that complies with employment legislation and which best suits your requirements.


As an employee, you might be faced with fundamental changes to your employment that have been unilaterally imposed upon you by your employer – which may amount to constructive dismissal. If you feel that this is the situation, it is important to contact a lawyer as these situations can be quite complex. Or, you may be faced with a clear-cut termination and have received a termination letter and package from your employer that your employer wants you to sign. Such packages often describe what will happen with your wages, vacation pay and benefits, such as medical, dental, life insurance, stock options, etc.


Again, we would suggest that you contact us to ensure that you fully understand the document, as well as understand what rights and entitlements you may be giving up in signing this documentation.

Severance Termination Packages