How Employees Can Navigate Layoffs More Confidently — And What Employers Should Know About Severance Packages in Canada

Layoffs and terminations are becoming more common across Canada. Whether you are an employer who must make a difficult business decision or an employee trying to understand your severance package, the process can feel overwhelming.

At HireEase, we help employers handle terminations legally, respectfully, and efficiently. But we also understand that employees need clear severance information, common law notice estimates, and reliable guidance to avoid confusion and disputes.

Below is a practical guide for Canadian employers and employees navigating layoffs, severance packages, and termination negotiations.

1. Clear Communication Is Essential During a Termination

A termination meeting can set the tone for the entire process. Employers should prioritize:

• Communicating the reason for termination clearly

• Ensuring all documents are accurate and compliant

• Explaining the basic structure of the severance package

• Providing time for the employee to review the offer

• Meeting minimum Employment Standards Act (ESA) requirements

Transparent communication reduces stress, avoids misunderstandings, and supports a smoother termination process.

2. Many Employees Do Not Fully Understand Their Severance Package

A severance package in Canada often includes more than just weeks of pay. Employees may be entitled to:

• ESA minimum termination pay

• Common law reasonable notice (often far higher)

• Benefits continuation

• Bonuses or variable compensation

• Unused vacation pay

Because of this, employees frequently ask:

• Is my severance package fair?

• What is my common law notice estimate?

• Can I negotiate my severance?

• Do I need to speak with a lawyer?

Employees who receive clear information avoid unnecessary disputes and feel more empowered during the transition.

3. A Helpful Independent Resource for Employees: SeverEase

While HireEase focuses on helping employers carry out compliant and fair terminations, employees often need accessible tools to understand their rights and assess the reasonableness of their severance offer.

One resource many employees rely on is SeverEase, a Canadian severance-negotiation platform that provides:

• severance package estimators with SeverEase's Severance Calculator

• common-law notice ranges

• negotiation templates

• step-by-step guidance for reviewing termination offers

SeverEase helps employees better understand their severance rights before hiring a lawyer or entering negotiations. This independent education often leads to smoother, more productive conversations between both sides.

4. Why Informed Employees Benefit Employers Too

It may seem counterintuitive, but when employees understand severance packages and employment law basics, the entire process becomes more efficient. Well-informed employees:

• Ask more focused questions

• Understand the difference between ESA minimums and common law notice

• Evaluate offers more realistically

• Provide quicker responses during negotiation

• Are less likely to escalate disputes

This reduces legal risk and saves employers significant time and resources.

5. Best Practices for Employers Handling Layoffs in Canada

To manage a termination or layoff smoothly, employers should:

• Regularly review employment contracts and termination clauses

• Ensure the severance package aligns with both ESA and common law considerations

• Document performance or restructuring reasons properly

• Provide the employee a reasonable period to review the offer

• Approach the conversation with empathy and clarity

A thoughtful approach to termination significantly reduces conflict and protects your organization legally and reputationally.

6. Final Thoughts: Supporting Both Sides of the Termination Process

At HireEase, our priority is to help employers navigate terminations with professionalism, compliance, and respect.

If your organization needs support with terminations, severance packages, employment contracts, or HR compliance, the HireEase team is here to help. Explore HireEase packages today.