A severance package says “statutory minimum”: is that the whole question?

Why the label is insufficient

A package described as “statutory minimum” does not explain every possible entitlement. Osler’s December 2024 review discusses scrutiny of termination clauses, Ontario and BC examples and withheld contractual payments. It describes a technical, fact-sensitive area. Provincial statutory minimums, the enforceability of a contract and possible common-law notice are separate questions. This is a dated law firm perspective; its historical outcomes do not calculate your entitlement today.

Read the complete documents

Gather the signed employment contract, amendments, termination notice, final pay statement, relevant bonus or equity plans and proposed release. Separate unconditional amounts from extra payments offered in exchange for a signature. Ask which items are already payable and which seek to settle other claims. Do not infer the legal effect of withholding or a release condition from its label alone; that needs the complete contract, circumstances and applicable law.

Make an itemised comparison

Create a table with separate lines for wages, vacation pay, notice-related pay, benefits continuation, bonus, expenses, and any other item in the offer. For each line, record the amount, the timing of payment, any conditions attached, and the scope of the release you would be asked to sign. Do not replace this exercise with a single figure such as "months of pay," because the legal analysis depends on the specific components. Record the province and ask how its current rules affect each component. The review’s Ontario and BC examples should not become a national conclusion.

Before a release deadline

If the employer sets a deadline for signing the release, request a complete copy of the proposed release and ask whether more review time is available. Obtain advice from a lawyer qualified in your province about the contract and your specific circumstances before signing. Keep the proposed deadline in your diary separately from any independent legal filing deadline; they need not be the same. Signing a release may waive claims you are not aware of, so do not rush.

A hypothetical illustration

Imagine a long-service employee in Ontario whose contract says the employer may terminate "at any time" in its "sole discretion," and the offer letter says the payment is the "statutory minimum." The employee has a signed contract, a termination notice, and a final pay statement. The employee asks: "Does the phrase 'sole discretion' make my termination clause unenforceable under the Ontario Employment Standards Act, and if so, am I entitled to common law reasonable notice instead of the statutory minimum?" A lawyer would need to review the full contract, the termination letter, and any related plan documents to assess the wording and the circumstances. The answer is not determined by the label "statutory minimum" alone.

Next steps if unresolved

If the employer does not provide a clear explanation of what is already payable versus what is conditional on signing the release, or if you believe the contract wording may be unenforceable, seek advice from an employment lawyer in your province. Bring the signed contract, all amendments, the termination notice, your final pay statement, bonus or equity plan documents, and the proposed release. Ask the lawyer specifically whether the termination clause complies with your province's employment standards legislation and whether it excludes common law reasonable notice. Do not rely on a general description of the offer; the legal outcome depends on the precise documents and facts.

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