What Is a Release, and Should You Sign One in Ontario?
A severance package almost always comes with a release. It is the document that actually gives up your legal claims, and once you sign it, it is very hard to undo.
Key takeaways
- The release is the part of the package that actually gives up your claims.
- It is usually broad and final, covering claims you may not even know about.
- Your ESA minimums are owed whether or not you sign the release.
- You are generally giving up your common-law claim in exchange for the extra money.
- Once signed, a release is very hard to undo, so review it first.
In this article
When you are handed a severance package, the money gets your attention, but the document that really matters is the release. It is the piece your employer needs you to sign, because it is what closes the door on any legal claim you might have. Signing it is usually the point of no return, so it is worth understanding exactly what it does before you put your name on it.
✅Quick answer. A release is a legal document in which you agree to give up your right to sue your employer in exchange for the severance being offered. It is typically broad and final, often covering claims you are not even aware of. The key thing to know: your ESA minimum termination and severance pay is owed to you whether or not you sign. What you are really trading away by signing is your larger common-law claim. So you should only sign once you know the total offer is fair for giving that up. Once signed, a release is very difficult to reverse.
What a release actually does
A release ends your ability to bring a claim. In a typical employment release you agree not to sue for wrongful dismissal, and often to waive human rights complaints, unpaid wages or bonus claims, and any other claim connected to your employment or its end. The wording is usually deliberately wide, releasing all claims known and unknown up to the date you sign. That is why the specifics of the wording matter so much.
Your ESA minimums are not the price of signing
This is the point employers rarely emphasize. Your ESA minimum entitlements, your statutory termination pay and, if applicable, statutory severance pay, are owed to you by law and cannot be made conditional on signing a release. An employer cannot lawfully withhold your ESA minimum until you sign. So when a package asks you to sign a release, the real question is whether the money on offer above your ESA minimum is enough to justify giving up your common-law claim.
What you are trading away
For most non-unionized employees, the valuable claim being released is common-law reasonable notice, which is usually far more than the ESA minimum. When you sign, you are typically accepting the offered amount in full and final settlement of that larger claim. If the offer is close to your ESA minimum but you had a strong common-law claim worth much more, signing can mean leaving significant money on the table for good.
Why it is so hard to undo
Courts generally enforce signed releases. Getting out of one is possible only in narrow circumstances, such as unconscionability, a lack of independent legal advice combined with real pressure, or a failure to pay even the ESA minimum. You cannot count on undoing it later just because you realize the deal was low. That is exactly why the review has to happen before you sign, not after.
What should you do before signing a release?
- 1.Separate your guaranteed ESA minimum from the extra amount being offered on top.
- 2.Do not accept any suggestion that your ESA minimum depends on signing.
- 3.Assess your common-law entitlement, which is what the release is really buying.
- 4.Get the package reviewed before you sign, because the release is effectively permanent.
The release is the reason to slow down, not speed up. Before you sign, see should you sign the severance offer and severance pay in Ontario, and note that any tight signing deadline is a tactic, not a legal effect, as explained in our guide to without prejudice letters. A severance review tells you whether the release is worth signing.
Frequently asked questions
What is a release in a severance package?
It is a legal document in which you agree to give up your right to sue your employer, in exchange for the severance being offered. It is usually broad and final, often covering claims you may not even be aware of.
Do I have to sign a release to get my severance?
Not for your ESA minimum. Your statutory termination and severance pay are owed whether or not you sign. A release is only required for the additional amount offered on top, which is meant to settle your larger common-law claim.
Can I undo a release after signing it?
Usually not. Courts generally enforce signed releases, and you can only escape one in narrow situations such as unconscionability or a failure to pay even the ESA minimum. That is why you should get advice before signing, not after.
Should I sign the release right away?
No. Any tight deadline is a negotiating tactic, not a legal requirement. Because a release is effectively permanent, you should separate your guaranteed minimum from the extra on offer and have the package reviewed first.
Marcus Bello
Legal Writer, Mirza Law
Marcus Bello is a legal writer at Mirza Law in Toronto.
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