You’ve just been handed a severance offer with a deadline attached, and the number feels final. It isn’t. This article explains what’s actually negotiable in Alberta, the mistakes that cost employees money, and how to ask for more without jeopardizing the offer you already have.
Losing your job is stressful enough without also having to make a major financial decision under a deadline. Most employees assume the number on the page is the only number available, so they sign quickly, relieved to have something in hand and eager to move on.
But that assumption costs people real money. The offer you receive is usually built on the legal minimum, not what you may actually be owed — and once you sign the release, that number is final. Here’s what to know before you respond.
Know What You’re Actually Owed
Alberta’s Employment Standards Code guarantees a floor: up to eight weeks of pay, depending on your length of service. Many severance offers stop right there, as if that floor were the ceiling too. It usually isn’t. Most non-unionized employees are also entitled to common-law reasonable notice, which is calculated differently and can run far higher — in some cases up to two years of your full compensation, including bonuses, benefits, and other perks you would have earned. There’s no fixed formula like ‘one week per year of service’; courts weigh your age, role, and how easily you could find comparable work.
Don’t Respond Immediately
Severance letters almost always come with a deadline — five days, a week, sometimes less. That deadline is set by your former employer, not by law, and it’s almost always negotiable. You’re entitled to ask for an extension in writing so you have time to get proper legal and financial advice before making a decision that’s final once you sign. The most common mistake I see is employees accepting far too little simply to reach a quick resolution during an already stressful time. Part of the art of negotiating is knowing how to preserve your position rather than rushing to close a quick deal. Quick deals tend to become small deals.
Negotiate the Whole Package, Not Just the Number
The largest gains in a severance negotiation often come from outside the base number itself. Before you counter, look at the whole package:
- Length of the notice period, not just the lump sum offered
- Continuation of health and dental benefits during that period
- Bonus, commission, or incentive pay you would have earned
- Vesting or payout of equity and unvested stock options
- Wording of the reference letter your employer will provide
- Outplacement or career transition support
Treating severance as a single number leaves value on the table that’s often easier to negotiate than the base figure itself.
Keep It Professional and in Writing
Employers expect a counter-offer — it’s a normal part of the process, not a confrontation. A calm, well-reasoned request rarely puts the original offer at risk; emotional appeals and ultimatums are far more likely to do that. Put every request in writing so there’s a clear record of what was offered and what was asked for. And be careful about disclosing a new job before you understand how it affects your claim: in Alberta, income you earn elsewhere during the notice period can reduce what you’re owed, a concept called mitigation, so timing what you share matters.
Understand What You’re Signing Away
The severance offer is really two documents in one: the payment, and the release you sign to receive it. The release is what makes the deal final, and it usually goes far beyond the dollar figure. Before you sign, know what you’re agreeing to give up:
- A full waiver of any future legal claims against your employer
- Non-competition or non-solicitation restrictions on your next role
- Confidentiality and non-disparagement obligations that outlast the job itself
- Limits on any bonus, commission, or equity still technically owed
Read the release as carefully as the number — it’s often where the real cost of a rushed decision shows up.
None of this works if you rush. The strongest negotiating position is the one you take time to build — asking the right questions, in writing, before you sign anything that closes the door for good.
Signing the release ends your ability to negotiate — permanently. Once it’s executed, you cannot go back and ask for more, no matter what you later learn about your entitlements.
That means your decision is final.
Alberta generally gives you two years to bring a wrongful dismissal claim if you never sign a release, but that window is irrelevant once you do — your leverage disappears the moment your signature goes on the page.
You Don’t Have to Decide Alone
It’s normal to feel pressure to just sign and move on — but you don’t have to make this decision by yourself, and you don’t have to rush it. A short conversation with an employment lawyer can tell you whether your offer reflects what you’re actually owed, and what a fair counter might look like. Book a consultation before you sign anything.
