Losing a job can feel demoralising for an employee, and is a difficult conversation for the person delivering the news. Whether it is their first termination on both sides of the table, or something they have navigated before, it is never straightforward. What employees need to know is this: putting yourself first, and wanting what you believe you are worth, will never backfire - if handled correctly.
Silence about the reasons for a termination is legal in Ontario. Silence about what you are owed is not the same thing.
What You Are Handed Is a Starting Point, Not a Final Offer
When a termination package is handed across the table, or delivered to a mailbox after a virtual meeting, employees are given what they are owed according to legislation - the Employment Standards Act (ESA) - plus any additional amounts the organization has chosen to include, whether that is termination pay, severance pay, common law notice, or a combination. What most employees do not know is that they are not required to accept that payment immediately. Signing the dotted line and handing it back in the moment, driven by fear or uncertainty, is almost always the wrong move.
If your employment contract does not contain an enforceable clause waiving your rights to common law, you could be looking at approximately one month per year of service - up to a maximum of around 26 months - on top of your ESA entitlements. If your organization has an Ontario payroll of $2.5 million or more and you have been there for 5 or more years, you may be entitled to ESA severance pay as well, which is separate from termination pay and frequently overlooked.
Most organizations, when they do offer packages above the ESA minimum, will provide something in the middle to upper range of what is owed. The cost of involving legal counsel, the back and forth, the meetings - all of that increases the cost to the organization. But checking what you are worth before you sign is always the right move. The numbers exist, and they are calculable.
Before you sign anything, run the numbers. The partnHR severance calculator gives you your ESA minimum and common law range in 30 seconds - free, anonymous, no signup required. HR professionals and employers, there is a tool here for you too.
What the Gap Actually Looks Like
Consider Sarah - a 41-year-old Marketing Manager in Ontario who has worked for the same organization for 8 years at a salary of $95,000. When she is let go without explanation on a Tuesday morning, she is handed a package totalling $29,000 - 8 weeks of ESA notice pay and ESA severance pay combined. It feels like a lot in the moment. She signs within the week.
What Sarah did not know: her employer's Ontario payroll exceeded $2.5 million, her contract contained no enforceable termination clause, and her Bardal factors - age, seniority, length of service, and limited availability of comparable roles - placed her common law entitlement between $54,000 and $79,000. She left between $25,000 and $50,000 on the table. Running her numbers on the partnHR severance calculator before signing would have taken 30 seconds.
This is not an unusual scenario. It is an extremely common one.
The Pivot - What Comes Next
Losing a job creates an unexpected window. How you use the first two weeks matters more than most people realize. The practical steps below are not about rushing into the next role - they are about protecting yourself, controlling your narrative, and giving yourself the best possible start.
- File your ROE and apply for EI immediately. Your Record of Employment will be filed by your former employer - but do not wait to confirm it has been submitted before applying for Employment Insurance. Apply the week after your last day. Delays cost you money. Your severance package structure can affect when EI begins, so understanding that timeline matters.
- Update LinkedIn before the news travels. You control your narrative. Update your profile, adjust your headline, and turn on Open to Work for recruiters only if you prefer discretion. Former colleagues move around - your next opportunity is often closer in your network than you think, and people refer those who are top of mind.
- Secure your references while relationships are warm. The day or week after a termination is the right time to reach out - not three months later. A brief, professional message to a former manager or senior colleague asking if they would be comfortable as a reference lands well when the relationship is recent and intact.
- Prepare your answer for "why did you leave?" You will be asked. The honest, professional answer is simple: the organization went through a restructuring and your role was eliminated. You do not owe anyone more than that. Practice saying it out loud until it feels neutral - because it is neutral. Without-cause terminations carry no reflection on your performance.
- Give yourself a defined runway, not an open-ended search. Set a 90-day structure: the first 30 days for applications and networking, the next 30 for interviews and follow-up, the final 30 for decisions. An open-ended job search without a framework loses momentum quickly. Treat the search like the job it is.
A Final Thought
One of the key reasons for writing this article was to provide clarity on what actually happens when someone loses their job. There are a variety of reasons an organization lets an employee go - and not all of them are communicated. But a great organization will consistently keep you informed throughout any performance concerns, provide coaching, and give you time and support to improve. If that did not happen, the conclusion is straightforward: you deserve a better manager, and a better employer.
You do not have to navigate this alone, and you do not have to accept the first number you are given.
Legislation Referenced
- Ontario Employment Standards Act, 2000 - Part X: Termination and Severance
- Ontario Employment Standards Act, 2000 - s. 57: Notice of Termination Entitlement Table
- Ontario Employment Standards Act, 2000 - s. 64-65: Severance Pay
- Bardal v. The Globe and Mail Ltd. (1960) - Common Law Reasonable Notice Factors
- Waksdale v. Swegon North America Inc., 2020 ONCA - Termination Clause Enforceability
This article is for informational purposes only and does not constitute legal advice. Employment law is complex and fact-specific. For your individual situation, consult a qualified Ontario employment lawyer. Nothing on partnHR constitutes legal advice - all content is educational and informational only.