Just fired? Know your number before you sign anything. Fast, clear severance rules for 5 countries — 2026 edition.
Connecting you to top-rated employment attorneys specialized in severance negotiation, wrongful dismissal, and termination rights.
Statutory severance is the legal minimum — what the law forces your employer to pay. Your actual entitlement is often higher once you factor in your employment contract, company policy, years of service, and whether you have a wrongful dismissal claim. Always check both numbers before you decide.
| Item | Rule |
|---|---|
| Is severance required by law? | No federal requirement — severance is not legally mandated for most US workers. |
| When is it required? | If your employment contract or company policy promises it — or if your employer triggers the WARN Act (mass layoffs of 100+ employees require 60 days notice OR pay in lieu). |
| Typical offer | 1–2 weeks per year of service. Not a legal floor — purely negotiable. |
| Deadline to negotiate | Employees over 40 have 21 days to consider a severance offer and 7 days to revoke after signing (ADEA/Older Workers Benefit Protection Act). |
| If fired for cause | Employer may refuse severance entirely if termination was for documented misconduct. |
| Key contact | Department of Labor — 1-866-487-9243 |
💡 Tip: If your firing was discriminatory or retaliatory, you may have a wrongful dismissal claim worth far more than any severance offered. Get a free consult before you sign.
| Item | Rule |
|---|---|
| Is severance required by law? | Yes — provincially mandated for most employees after the statutory notice period. |
| Statutory notice/pay in lieu | Varies by province and years of service. Ontario ESA example: 1 week per year, max 8 weeks notice + up to 26 weeks severance pay for large employers (50+ employees, $2.5M+ payroll). |
| Common law severance | Courts regularly award 1 month per year of service for wrongful dismissal — far above the ESA minimum. This is the number a lawyer negotiates. |
| Quebec specifics | Under the Act Respecting Labour Standards, after 3 years of service an employee dismissed without good cause is entitled to notice or indemnity. Courts apply common law principles generously. |
| Fired for cause | True "just cause" eliminates severance. However, courts set a very high bar — most terminations do not meet the legal standard. |
| Deadline to claim | 2 years from date of termination in most provinces (Ontario). Quebec: 3 years. |
| Key contact | CNESST (QC) — 1-844-838-0808. Ontario Ministry of Labour — 1-800-531-5551. |
💡 Tip: The ESA minimum and common law entitlement can differ by 3–5x. If you were not offered common law severance, you are almost certainly being underpaid.
| Item | Rule |
|---|---|
| Is severance required by law? | Yes — Statutory Redundancy Pay applies after 2 years of continuous employment. |
| How it is calculated | Based on age and years of service (max 20 years counted): — Under 22: ½ week's pay per year — Age 22–40: 1 week's pay per year — Age 41+: 1½ week's pay per year Weekly pay capped at £643 (2026). Maximum statutory award: £19,290. |
| Notice pay | 1 week per year of service, minimum 1 week, maximum 12 weeks (statutory). Contract may give more. |
| Enhanced redundancy | Many employers pay above statutory — check your contract or staff handbook. |
| Unfair dismissal claim | After 2 years, you can claim unfair dismissal at tribunal — compensatory award up to £115,115 (2026). |
| Deadline to claim | 3 months less 1 day from dismissal date. Miss this and you lose the right. |
| Key contact | ACAS — 0300 123 1100. gov.uk redundancy calculator online. |
💡 Tip: UK redundancy and unfair dismissal are separate claims — you may be entitled to both. ACAS early conciliation is free and required before filing at tribunal.
| Item | Rule |
|---|---|
| Is severance required by law? | Yes — indemnité légale de licenciement after 8 months of service. |
| Legal minimum formula | ¼ month of salary per year for the first 10 years + ⅓ month per year beyond 10 years. Based on the higher of average monthly salary over last 12 months or last 3 months. |
| Collective agreement | Your convention collective (sector agreement) often gives a higher amount — always check it first. |
| Notice period (préavis) | 1–3 months depending on role and seniority. Must be paid (or worked). Skipping notice = additional indemnity owed. |
| Solde de tout compte | Final pay statement covering all outstanding wages, unused vacation (congés payés), and applicable indemnities. Due on last day. |
| Contesting the dismissal | File at the Conseil de prud'hommes within 1 year of notification. Wrongful dismissal (licenciement abusif) can result in additional damages. |
| Key contact | Inspection du travail — 3646. Conseil de prud'hommes — local courthouse. |
💡 Tip: In France the employer must follow a strict procedure (entretien préalable meeting + written letter with reasons). A procedural error alone can increase your damages.
| Item | Rule |
|---|---|
| Is severance required by law? | Yes — liquidación is a constitutional right under the Federal Labor Law. |
| The liquidación formula (unjustified dismissal) | 3 months salary (partes proporcionales) + 20 days per year of service + seniority bonus (prima de antigüedad) of 12 days per year. Plus all outstanding aguinaldo, vacation pay, and proportional bonuses. |
| If dismissed with just cause | Only the prima de antigüedad and proportional pay are owed — not the full liquidación. The employer must prove cause in writing. |
| Notice period | No statutory notice requirement for unjustified dismissal — the employer pays the liquidación instead. |
| Reinstatement option | Workers can choose reinstatement or full liquidación — the employer cannot force a cash settlement if the worker chooses to return. |
| Deadline to claim | 2 months from date of dismissal. This is strict — do not wait. |
| Key contact | PROFEDET — 800-911-7877 (free representation). Local Tribunal Laboral. |
💡 Tip: Mexican labor law strongly favors workers. Even if the employer claims just cause, tribunals require solid written evidence — a verbal allegation is almost never sufficient.
These are the most commonly searched questions — answered in plain language.
Yes — always. The first offer is rarely the final one. Key leverage points: years of service, whether the dismissal was for cause (courts set a very high bar), any human rights or retaliation issues in the background, and whether you have a written contract that promises more. A 30-minute lawyer consultation often results in a 2–5x better offer.
"For cause" is frequently claimed but rarely proven to a legal standard. Unless the employer has documented, serious misconduct, most "for cause" terminations can be challenged as wrongful dismissal — which restores your full severance entitlement plus potential additional damages. Do not accept a zero-severance offer without getting legal advice first.
Once signed, it is very difficult. However: in the US, workers 40+ have a 7-day revocation window even after signing. In Canada, agreements signed under duress or without independent legal advice have been overturned by courts. In France, a signed rupture conventionnelle has a 15-day cooling-off period. Act immediately if you regret signing.
Typically no — resignation is voluntary departure and waives most statutory entitlements. The exception is constructive dismissal: if the employer made your working conditions so intolerable that you were effectively forced to leave, courts can treat your resignation as a firing — restoring full severance and wrongful dismissal rights. Document the conditions before you go.
NDAs in severance deals often prohibit you from discussing the workplace issues that led to your firing — including harassment, discrimination, or safety violations. This is legal in most countries but negotiable. You can push back on scope, duration, and carve-outs (e.g., being allowed to speak to lawyers or regulators). Never sign without reading and ideally having a lawyer review it.
No — in virtually every jurisdiction here, your earned wages (last paycheck, accrued vacation, pro-rated bonus) are owed to you regardless of whether you sign any severance agreement. Withholding earned pay to coerce a signature is illegal wage theft. File immediately with your country's labor board if this happens.
It varies: US — employees 40+ have 21 days to consider; no minimum for under 40 but asking for time is always reasonable. Canada — no statutory minimum; courts expect a "reasonable" time. UK — employers should give reasonable time; no fixed statutory window. France — 15-day cooling-off for rupture conventionnelle. Mexico — you have 2 months from dismissal to file a tribunal claim, but the offer itself can be reviewed any time before you sign.
Canada: Yes — severance pay in lieu of notice delays the start of EI benefits by the equivalent number of weeks. A 10-week severance payout delays EI by 10 weeks. US: Rules vary by state — some states reduce or delay unemployment benefits during weeks covered by severance. UK: Redundancy pay does not affect JSA. France: Indemnité de licenciement does not affect ARE (unemployment insurance). Mexico: IMSS benefits are separate from liquidación.
Every country has a hard deadline to file a severance or wrongful dismissal claim. Miss it and you lose the right permanently — regardless of how strong your case is.
WARN Act: 60 days. ADEA: 300 days.
Provincial wrongful dismissal claim.
Employment Tribunal claim.
Prud'hommes wrongful dismissal.
Labor Tribunal — strict, no exceptions.
*Always confirm with legal aid immediately.
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