Do I have to sign a release or a waiver in order to receive my severance package?

In fact, a dismissed employee is entitled to receive their minimum statutory termination entitlements under employment standards legislation. Those statutory entitlements have to be paid out by law and it is unlawful to hold them back or pressure an employee to sign a release in exchange for their statutory termination entitlements.

However, anything in excess of one’s statutory termination pay, and if applicable, severance pay entitlements is routinely made contingent upon the employee’s agreement and execution of a full and final release. This is not illegal. This does not mean that the employee has to sign or should sign a release. In fact, there may be good reasons not to sign the release. For instance, the employee may have claims for unpaid commissions or bonus. There may be human rights issues that need to be addressed as part of a final separation package. The severance package may be deficient from a legal perspective.

It is generally prudent to obtain legal advice before signing anything.