Your employer has terminated you and presented a package. At the bottom of the agreement — or attached as a separate document — is a release. You may be told you need to sign within a week, or that the offer expires. Before you sign anything, there is one thing you must understand: signing that release is permanent, and once you sign, reversing it is extremely difficult.

What a full and final release actually waives

A standard severance release is not merely an acknowledgement that you received payment. It is a legal document in which you agree to give up — permanently and forever — your right to pursue any claim arising out of your employment or termination. That includes:

• Wrongful dismissal claims

• Human rights complaints to the HRTO

• Outstanding bonus and equity entitlements

• Long-term disability claims you have not yet made

• WSIB claims

• Any claims you did not know you had at the time you signed

The scope of these releases is intentionally broad. Courts enforce them when they are validly obtained.

Why employers create urgency

The short deadline attached to a severance offer is a negotiating tactic, not a legal requirement. Employers know that employees who consult an employment lawyer frequently discover their package is inadequate — and that discovery often leads to negotiation or litigation. The deadline is designed to prevent that from happening.

Ontario courts have recognized the power imbalance inherent in the termination context. While you are not entitled to indefinite time to deliberate, you are entitled to a reasonable opportunity to obtain independent legal advice before being bound by a release.

Can a release be set aside?

In limited circumstances, yes. Courts have voided releases where:

• The employee signed under duress or was subjected to undue pressure

• There was inadequate consideration — meaning the employer paid nothing beyond what was already owed under the ESA

• The employee lacked independent legal advice and did not genuinely understand what they were signing

• The release was obtained through misrepresentation about what the employee was entitled to

The inadequate consideration argument is practically important: if the payment made in exchange for the release is close to or equivalent to what the ESA already required, there may be no new consideration to support the release at all — making it potentially unenforceable regardless of what you signed.

What a reasonable review period looks like

Courts expect employees to be given a reasonable amount of time to review a severance offer and consult counsel before any deadline expires. A 24- to 48-hour deadline is almost certainly inadequate. One to two weeks is generally considered appropriate. If your employer has given you a very short window, that timeline can be pushed back in most cases.

When signing can still make sense

Signing a release is not always the wrong choice. If the offer reflects a genuinely fair settlement — one that accounts for the full common law notice period, any outstanding variable compensation, and the costs and uncertainty of litigation — then accepting it and moving on can be entirely reasonable.

The problem is that you cannot assess whether the offer is fair without knowing what you were actually entitled to. That assessment requires legal advice. Most employment lawyers in Ontario will give you an honest assessment of your situation at no upfront cost.

Do not let a deadline pressure you into a permanent decision about your rights.

King Law · Employment Lawyers · Oshawa, Ontario 📧 steven@kinglaw.ca | 🌐 kinglaw.ca

This post provides general legal information for Ontario employees. It is not legal advice. Contact us directly for advice specific to your situation.