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If your severance package includes an ADEA waiver (and most of them do), you have 21 days to look over the general release and a seven-day period to revoke the release.

Your severance agreement should be offered to the employee during the notification meeting by your HR manager who will go over the details of document with the employee. This can be a tricky conversation to have, which is why we suggest you have a layoff script on file.

Many employers give an employee a short amount of time to accept a severance package such as one week. However, in Ontario, the statute of limitations for wrongful dismissal is two years. Therefore, employees can actually wait up to two years before accepting any deal proposed by the employer.

Severance pay is often granted to employees upon termination of employment. It is usually based on length of employment for which an employee is eligible upon termination. There is no requirement in the Fair Labor Standards Act (FLSA) for severance pay.

You can always try to negotiate a severance package. You generally have 21 days to sign an agreement, so take your time to review all the provisions, to get a sense of what is standard in your industry in general and at that company in particular, and for those at your management level or with your years of experience.

When does an employee qualify for severance pay? An employee who has completed at least 12 consecutive months of continuous employment qualifies for severance pay.

You can negotiate your severance package (there is often room to improve the first offer) but when you negotiate, you also risk losing the offer on the table or it changing in ways you do not want. For instance, at common law, you have a duty to mitigate, which means you have a duty to look for and take new employment.

Write the terms of the severance package in a formal list that you will present to the employee at the termination meeting. Include a line at the end of the document for the employee's signature agreeing to the terms.

The severance pay offered is typically one to two weeks for every year worked, but it can be more. If the job loss will create an economic hardship, discuss this with your (former) employer. The general practice is to try to get four weeks of severance pay for each year worked.

Although you don't have to sign a severance agreement, your employer may make it a condition of receiving severance pay.However, in most cases, an employer is free to condition severance on the employee signing the agreement. In other words, if the employee refuses to sign, the employee won't get any severance pay.