Write a Canadian Severance Negotiation Letter
Canadian severance negotiation letter: sample and writing tips
If you’ve just been laid off in Canada, you’re likely dealing with a flood of emotions and legal documents at the same time. The good news is that many severance packages in Canada are negotiable, and writing a professional severance negotiation letter can help you secure fair compensation while leaving on good terms.
The truth is, many severance offers in Canada are negotiable - especially if your contract doesn’t spell everything out, or you’re part of a larger layoff.
A well-written letter can help you advocate for fair compensation and your legal rights without burning bridges.
Why negotiate your severance?
Your initial severance offer might not reflect your full entitlements, or what your employer is willing to give. Employers may offer the minimum required by law, but you might be eligible for much more.
For example, extended benefits, outplacement services, or extra pay in lieu of notice. Learn more in our post on what to ask for in a Negotiating your Canadian severance package .
In Canada, severance packages are often based on:
Your length of service
Your age and role
How long it may take to find new work
The circumstances of your termination
You don’t always need a lawyer to open the conversation and severance negotiation. But it is critical to be professional in every interaction.
Where to start with severance negotiation
When you first receive a severance offer, it can feel overwhelming and confusing. A good first step is simply replying to the initial offer with a short and professional email.
You don’t need to have all the details figured out right away. By acknowledging the offer and politely asking for time to review or for certain terms to be reconsidered, you open the door to a fairer conversation. This simple reply can set the tone for respectful negotiation while giving you space to prepare your full response.
Employers often set very short timelines, sometimes only two to five days, for you to accept a severance package. While that can feel stressful, those deadlines don’t take away your legal right to the full amount of severance you may be entitled to.
These quick deadlines are usually meant to push non unionized employees into signing before they’ve had a chance to carefully review the offer. The problem is that rushing can cause you to accept far less than what the law says you deserve.
Using an online severance calculator
Another helpful step is to use an online severance calculator. These free tools give you a general estimate of what you could be entitled to based on factors like your age, length of service, and role. While they don’t replace professional legal advice, they can be a good starting point to see if the offer you received seems reasonable.
Comparing your offer to the calculator’s results can help you decide whether to accept, negotiate, or seek legal support.
How to send your severance negotiation letter
Send it via email unless you’ve been instructed otherwise.
Use your personal email (not your work address, in case it is disconnected).
Keep a copy for your records.
You can negotiate severance with confidence by being prepared. Watch for signs that you might be receiving an offer of severance. There are usually signals before this happens.
Before you respond to an offer, take time to review what’s standard in your province, what’s written in your contract (if anything), and what’s missing from the package you received.
Preparation helps you stay calm and professional and ensures you’re not leaving money or benefits on the table. Whether it’s more pay, extended health coverage, or a better end date, asking the right questions can lead to a fairer deal and a smoother exit.
Quick tips to make your letter effective
Keep it professional: Avoid emotional language, even if the layoff felt unfair.
Be specific: Don’t just say “more severance” - say what you want and build a case to demonstrate your eligibility.
Stay open: Indicate that you’re willing to talk more and work toward a solution.
For even more support, check out our guide to severance eligibility by Canadian province.
Sample severance negotiation letter (Canada)
Subject Line: Request for Review of Severance Terms
Dear [Manager’s Name] / [HR Representative],
Thank you for meeting with me and providing the details regarding my employment termination. I’ve had the chance to review the severance package offered, and I’d like to respectfully request a review of a few terms based on my service and situation.
As you know, I’ve worked with [Company Name] for [X years], most recently in the role of [Your Job Title].
During this time, I’ve consistently [mention 1–2 notable contributions, e.g., exceeded performance goals, led key projects, trained new team members].
Given my years of service and the current job market, I’m requesting:
An extension of salary continuance to [X weeks/months]
Continuation of health benefits until [date]
A reference letter or confirmation of employment to support my job search
Please know that I value the time I’ve spent with [Company Name], and I want to ensure this transition is as smooth and professional as possible for both of us.
I would appreciate the opportunity to discuss this further and am open to a call or meeting at your convenience.
Thank you for your consideration.
Sincerely,
[Your Full Name]
[Your Phone Number]
[Your Personal Email Address]
Finding the Right Approach to Severance Negotiation
There is no single right way to handle a severance negotiation. Everyone’s situation is unique and shaped by factors such as your role, your tenure with the company, and the circumstances of your departure. What matters most is choosing an approach that feels both comfortable and strategic for you.
For some people it may mean taking a firm and direct tone to secure key protections. For others it may feel better to approach the conversation in a more collaborative way, focusing on mutual respect and long term relationships. Both styles can be effective as long as the approach aligns with your priorities and communication style.
If you are not sure where to start, it can help to look at examples. Reviewing different ways of phrasing requests or structuring your message can give you inspiration, spark ideas you might not have considered, and help you find language that feels natural to use.
When to contact an employment lawyer
If you’re feeling uncertain about your severance package and don’t know whether the offer is fair, it may be time to reach out to an employment lawyer.
A lawyer with expertise in Canadian employment law can review your specific situation, explain your rights, and help you understand whether you should negotiate further. Even a short consultation can give you peace of mind and ensure you’re not leaving money or benefits on the table.
The importance of negotiation your severance offer
Writing a severance negotiation letter isn’t just about financial compensation. It’s also about honouring the time, effort, and contributions you’ve given to your workplace. For many Canadians, a layoff is more than the loss of a job. It can also feel like the loss of identity, security and routine.
Taking the step to put your request for fair treatment in writing lets you reclaim your voice during a difficult transition. It shows professionalism, clarity, and self respect. By asking for fair severance terms, whether that includes extended benefits, additional pay, or support for your next role, you’re protecting your future while closing this chapter with dignity.
Being laid off is never easy. The legal details, the emotions, and the uncertainty about what comes next can feel overwhelming. But it’s important to remember that you have the right to advocate for yourself.
A severance negotiation letter isn’t about being demanding. It’s about making sure your years of service are recognized in a way that helps you move forward.
Take time to reflect on what you need most in this moment, whether that’s financial security, health coverage, or resources for your next career move. Many Canadians have successfully negotiated stronger severance packages by taking this same step.
Most of all, remind yourself that this ending is also a beginning. By advocating for fair treatment today, you create the space and stability to build what comes next with hope and resilience.
For more guidance on navigating job loss and negotiating fair packages, explore our severance resources.
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