As an employment lawyer, I’ve seen firsthand how daunting job transitions can be—especially when they come unexpectedly. Recently, I had the privilege of assisting Sarah (not her real name), a senior executive from a leading technology company who faced just that situation. Her story not only underscores the importance of understanding your rights but also highlights how comprehensive severance packages can pave the way for a smoother career transition.
A few months ago, Sarah, a high-ranking executive known for her innovation and leadership, was abruptly fired without cause during a corporate restructuring. She navigated the business through the pandemic, led her department to consecutive years of growth, and initiated plans to position the company as a significant player in the artificial intelligence market. Despite these achievements, her severance offer was a barebones package offering minimum severance pay that didn’t even come close to reflecting what she was legally entitled to.
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Sarah was stunned and felt the rug had been pulled out from under her. Her compensation wasn’t just a salary—it was a complex mix of bonuses, stock options, and perks that she’d earned through hard work and dedication. The initial offer ignored most of these elements, leaving her feeling uncertain about her future.
That’s when she reached out to my firm, Samfiru Tumarkin LLP.
Rebooting her rights
We sat down and unpacked her employment contract line by line, focusing on clauses related to termination, compensation, and benefits. While these clauses can potentially limit your rights to severance when you lose your job, they are often poorly drafted or legally outdated—as was the case with Sarah’s contract. This oversight meant that her employer’s attempt to deny her a significant severance package was unjustified. This was a classic case of wrongful dismissal—she was let go without receiving the correct amount of severance pay. She had rights that could be enforced.
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Here’s how we secured the compensation she deserved:
- We established that severance should reflect multiple aspects of her employment—not just how long she had worked for the tech company. This included her age, senior position, bonuses, difficulty in finding similar work elsewhere, and other financial incentives.
- While companies often include clauses stating that unvested stock options are forfeited upon termination, we negotiated for compensation equivalent to the value of the options that would have vested during the months covered by the severance package.
- We secured continued health, dental, and life insurance coverage for the duration of the severance period, ensuring Sarah and her family were protected.
- To help her bounce back faster, we included outplacement services in the package.
- As our employment lawyers are often able to do, her employer covered most of her legal fees.
The result? Sarah walked away with an executive severance package that was tens of thousands of dollars more than the initial offer. It truly acknowledged her value and gave her the financial stability to plan her next move confidently.
Upgrade your severance knowledge
This isn’t just about one executive’s win—it’s a signal to all employees in similar situations. If you’re facing termination, especially at an executive level, it’s crucial to update your understanding of what your rights are. Don’t accept the first offer at face value or be pressured by a severance pay deadline into accepting a bad deal.
Many employers present minimal severance packages, hoping employees won’t question them. In reality, you might be entitled to much more, based on our laws.
Executives often have intricate pay structures. Working with an employment lawyer at Samfiru Tumarkin LLP who understands the full scope of your entitlements is crucial.
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Steps to take
If you find yourself in a similar situation, here are some crucial steps to take:
- Don’t rush into accepting a severance offer. Your rights to severance pay don’t expire after your employer’s arbitrary deadline. You have a right to take time to review it thoroughly.
- Consult an expert. Employment law can be complex. Speaking with an experienced lawyer at our firm can illuminate entitlements you weren’t aware of.
- Examine every clause. From severance agreements to stock options, details can significantly impact what you’re owed.
- A severance package is often a starting point for discussions, not the final word. We can negotiate terms that reflect your true entitlements.
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Moving forward
At the end of the day, losing your job doesn’t have to be the end of the story—it can be the beginning of a new chapter filled with opportunity. Sarah’s experience is a testament to that.
The team at Samfiru Tumarkin LLP is here to talk about your severance package. Our goal is to ensure you get what you’re rightfully owed, so you can focus on your future with confidence.
Lost your job or wrongfully dismissed?
Contact the firm or call 1-855-821-5900 for a consultation with an employment or disability lawyer. We will get you the advice you need and the compensation you deserve.
Lior Samfiru is an employment lawyer and co-founding partner at Samfiru Tumarkin LLP, Canada’s most positively reviewed law firm specializing in employment law, and long-term disability claims. He provides legal insight on Canada’s only Employment Law Show on TV and radio.