Should You Sign That Severance Offer? Read This First
The offer letter has a deadline and a release to sign. Before you do, understand what you may be giving up and why a quick review usually costs you nothing.
Key takeaways
- Do not sign on the spot. Signing the release usually ends your right to claim anything more, even if the offer was a fraction of what you were owed.
- The deadline is rarely as firm as the letter makes it sound. Employers routinely extend it when a lawyer asks.
- Most first offers are the ESA minimum, far below the common law severance most employees are actually owed.
- A review is free and tells you your real number before you give up your rights.
- If you already signed, your options are narrow, but the ESA minimum can never be signed away, so it is still worth a check.
In this article
A severance offer usually arrives with two pressures built in: a deadline, and a release to sign. Both are designed to get you to accept quickly, before you find out what you are actually owed. Slowing down is almost always the right move, and here is why.
✅Quick answer. Do not sign a severance offer or release right away. Signing the release typically gives up your right to claim anything more, and most first offers are only the statutory minimum. The deadline is usually softer than it looks. Get the offer reviewed first; the review is free and the upside is often tens of thousands of dollars.
Should you sign a severance offer right away?
No. There is almost never a good reason to sign on the spot. The offer is the starting point of a negotiation, not the final word, and once you sign the release you generally cannot reopen it. Taking a few days to get advice costs you nothing and protects everything.
What are you giving up when you sign the release?
A severance release is a legal document that, once signed, usually ends your ability to claim anything beyond what the offer contains. That can include your common law severance (often far more than the offer), claims for unpaid bonus or commissions, and in some cases human rights claims. You are trading away all of that for the cheque in front of you, which is exactly why employers want it signed fast.
Is the deadline real?
Usually not in the way it is presented. Employers often set a short window (sometimes just a day or two) to create urgency. In practice, when a lawyer responds on your behalf, that deadline is frequently extended, because the employer would rather negotiate than face a wrongful dismissal claim. A deadline is a tactic, not a law.
How do you know if the offer is fair?
Compare it to your real entitlement, not to your relief at being offered anything. Most offers track the ESA minimum (roughly one week per year), while your common law entitlement is measured in months and can reach up to 24 months of full pay and benefits. The gap is often large. Our guide to severance pay in Ontario explains how the real number is built.
Before you sign, know the number you are giving up
The release trades away everything above the offer. Estimate your real common law range first with our free, case-law-calibrated calculator.
What if you already signed?
Your options are narrower, but not always zero. A release cannot waive your ESA minimums, so if the offer fell below those you may still be owed the difference. In limited cases, a release can be challenged where it was signed under duress or was unconscionable. It is still worth having someone look at it.
What should you do before the deadline?
- 1.Do not sign, and do not verbally accept.
- 2.Keep the offer, your contract, and your pay and bonus records.
- 3.Get a free review before the stated deadline.
- 4.Let your lawyer ask for an extension and respond. Most cases settle through negotiation.
Before you sign anything, get a free review of your offer.
Frequently asked questions
Can I lose the offer if I do not sign by the deadline?
It is uncommon. The deadline is usually a pressure tactic, and employers routinely extend it when a lawyer responds. Even if an offer is withdrawn, your underlying legal entitlement to severance does not disappear.
What happens when I sign a severance release?
You generally give up the right to claim anything more, including common law severance and often unpaid bonus or human rights claims. That is why it is important to know your real entitlement before signing.
Is the first severance offer usually fair?
Often not. Most first offers are at or near the ESA minimum, which is well below the common law severance most non-unionized employees are owed. The first offer is a starting point.
Does it cost anything to have my offer reviewed?
No. The first review is free, and most severance cases are handled on contingency, so you pay only if we recover for you.
Daniel Carter
Legal Writer, Mirza Law
Daniel Carter is a legal writer at Mirza Law in Toronto. He writes about layoffs, employment contracts, and the steps to take before you sign anything from your employer.
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