In many cases, it is safe to assume that a party’s first offer is not the best offer you’ll be getting. Negotiating your severance pay is often important as it helps you ensure that you’re getting the best payment package from your employer.
The aim of your severance package is to compensate you as you would have been if you weren’t terminated, and until you’re able to reasonably find permanent employment for your future.
In case you don’t have a termination clause that is enforceable and limits your entitlements during termination, your entitlement will be determined by the common law.
In this article, you’ll learn about how the best employment lawyer in Toronto helps you secure fair severance negotiations. You’ll also learn about various ways in which you can get the best severance package.
How an Employment Lawyer Helps You Secure a Fair Severance Package?
Here’s how an employment lawyer will help you secure a fair and justified severance settlement package:
Understanding and Determining Your Entitlement:
A lawyer specializing in employment in Toronto will understand your contract thoroughly by studying the terms and conditions. This will help them assess everything you’re entitled to.
The lawyer will calculate your potential entitlement based on your years of service and wages. They will also determine what you’re owed under common law, which may go beyond the minimum ESA requirements.
For instance, while the ESA may offer a maximum of 26 weeks’ pay, common law will allow for an amount that is significantly larger, which implies better settlement for your severance.
Negotiating the Settlement:
The lawyer can negotiate with your employer, representing your case for a severance package that offers more than what you were initially offered.
This severance package can also include negotiating for additional benefits, a longer notice period, or other terms and conditions that are beyond just a lump sum amount for your financial support.
Reviewing and Drafting Settlement Agreements:
A lawyer will review the settlement agreement that is offered by your employer. This review will help them ensure that it is fair and includes everything you’re entitled to.
They can also draft the agreement to safeguard your interests and ensure that by signing, you are not giving up any legal claims that you have for your future or any other issues.
Providing Legal Advice and Support:
An experienced lawyer specializing in employment will explain the options you have, along with the potential risks and benefits of every course of action, such as accepting the offer, negotiating, or taking your employer to court.
They can even offer a confidential and professional assessment of your situation, which will help you make a well-informed decision and avoid any potential pitfalls that may result in lower severance pay.
Identifying Hidden Issues:
An experienced lawyer, who has years of practice in employment law, can spot or identify problematic clauses that are present in an employment contract or severance agreement.
These problems include unenforceable termination clauses or non-compete/non-solicitation agreements that are unenforceable. The lawyer will also advise you on the implications these problems can bring.
Things That You Need to Consider While Negotiating Your Severance Package
Here are some important things that you need to keep in mind while negotiating your severance package:
Take Your Time:
Sometimes, employers will offer a deadline by which they would want you to sign their severance agreement and release. However, if you’re planning on negotiating your severance package, you don’t have to adhere to that deadline.
In many instances, employers won’t revoke a severance offer just because you haven’t adhered to the deadline they’ve imposed. If your employer is forcing you to sign an agreement and waiver/release in a minute timeframe, this is problematic.
Consult Your Colleagues:
Your lawyer may ask what your colleagues or friends have experienced while negotiating with your employer. What packages were they offered, and did the employer cooperate during the negotiations?
One important thing that you need to keep in mind is that each negotiation is unique and runs on the set of facts it has.
Remember the Extra Things:
Avoid signing any waivers of your rights or releases before consulting with a lawyer specializing in employment, in case everything goes beyond and above what employment statuses require your employer to pay you without any conditions.
These include your right to sue your employer or disparage them. They will love it when you restrict your rights in such ways that you don’t utilize your legal rights while negotiating for a settlement for your severance.
Furthermore, you should also remember that you should avoid limiting or restricting yourself to negotiating the dollar amounts in your severance package. If your employer doesn’t show flexibility with the amount of severance, you can alter the format of the payment into a more favourable tax treatment.
You can and should negotiate for significant benefits coverage continuation, depending on how essential they are to you. Apart from that, you should also negotiate outplacement counselling or assistance for job placement, along with the continuation of any other perks that you enjoyed while being employed.
How Can You Effectively Negotiate a Severance Package?
The best approach that you can employ while negotiating a severance settlement is to treat the initial offer as a starting point, not the one that’s final. Employers often seek some negotiation and may pause their best offer.
The most important thing that you need to do during such times is to analyze whether the offer fairly reflects your entitlements under the common law. Another thing is that your severance package should keep you financially covered until you find a new job.
To Summarize
Financial coverage while finding a new job after resigning from the older one is something that you need the most. It will help you ensure that your daily life isn’t disrupted and nothing goes wrong till you find employment.
Furthermore, with an employment lawyer by your side, you’ll be able to secure a comprehensive severance package that will keep you financially protected till a new job gets you.