Fired in Ontario? Asked to Sign a Release by a Deadline - Complete Guide | UL Law

What to Do if You’re Fired and Asked to Sign a Release by a Deadline

Losing your job is a shock. It can feel even more stressful if your employer hands you a severance offer with a ticking deadline, saying you must sign a release in exchange for a set amount of notice or severance pay. You might be wondering: Do I really have to sign these papers by the deadline? What are my rights?

Take a deep breath. If you are a non-unionized employee in Canada (with a focus on Ontario), you have rights and options. This blog will walk you through what to do — and not do — in this situation. We’ll cover why that deadline may not be as final as it looks, why consulting an employment lawyer is critical, and highlight recent court cases showing that you cannot be forced to sign away your legal entitlements.

Don’t Panic — You Don’t Have to Sign Immediately

You are not legally required to sign a severance offer on the spot — or at all. Employers often impose a short deadline, such as “sign by Friday,” to pressure you. But that date isn’t set in stone, and your legal rights don’t evaporate just because a timeline passes. In Ontario and across Canada, an employer’s deadline does not override the law. Your entitlements under employment standards legislation and common law do not suddenly vanish after the offer’s expiry date.

In fact, you have no legal obligation to accept a severance offer by a certain deadline. Your rights under provincial employment laws, such as Ontario’s Employment Standards Act, do not expire on that offer date. For example, you generally have up to two years from your termination date to pursue a wrongful dismissal claim for proper severance. So, a tight 48-hour or one-week deadline from your boss doesn’t cut off your ability to seek what you’re owed.

The key point is this: that deadline is often a pressure tactic, not a legal ultimatum. Take the time you need to think and get advice. Your employer can’t legitimately penalize you for not signing on the spot.

Understand Your Rights: Minimum Standards vs. Full Entitlements

When you’re let go without cause in Canada, you’re entitled to certain minimum payments under employment standards laws. In Ontario, the Employment Standards Act guarantees minimum notice pay or working notice and possibly severance pay if you’ve been there five or more years and the employer’s payroll is large enough. These minimums are yours by law, no strings attached — you get them even if you refuse to sign a release.

An employer cannot make your ESA minimum termination pay conditional on signing a release. Doing so violates the law. Courts have been very clear on this point: your employer’s obligation to pay at least the ESA minimums is not contingent on you signing anything.

Aside from minimum standards, many employees are entitled to much more severance under common law. This judge-made law considers factors like your age, position, length of service, and chances of re-employment. It can be significantly higher than the ESA minimum. For example, depending on your situation, you could be owed up to 24 months’ pay. More commonly, a rough guideline is a few weeks of pay per year of service, but it varies.

Why is your employer offering a specific amount and a release? Typically, employers offer a severance package that includes at least the ESA minimum and sometimes a bit more — but only if you sign a release promising not to sue or pursue any further claims. The release is a contract that protects the employer from legal action after you accept the package.

However, that “extra” they offer might still be far less than your full legal entitlement. It’s common for initial packages to be on the low side. Employers sometimes hope you’ll just take it quickly. Don’t assume the offer is fair — it might only reference ESA minimums and ignore your common law rights. If the letter only mentions “ESA entitlements” or you feel it’s a “take it or leave it” deal with undue pressure, that’s a red flag that you should scrutinize the offer.

You Cannot Be Forced to Sign (and Your Employer Can’t Withhold What You’re Owed)

Your employer cannot lawfully force you to sign a release in order for you to get your basic termination pay. If you don’t sign the termination papers, at minimum your employer still must pay you what you’re owed under your contract or the ESA, whichever is greater. They can give a deadline for accepting the enhanced severance offer, but they cannot withhold your legal minimum entitlements, or any amounts already contractually owed, just to coerce a signature. If they fail to pay the required minimum, you could have grounds for even greater compensation at common law.

Recent Court Cases

Recent court decisions back this up. In Wilds v. 1957612 Ontario Inc. (2024), an Ontario employer told a dismissed employee that her ESA minimum termination pay would only be paid after she signed a release. The employee refused to sign, and the employer withheld her termination pay. The Ontario Superior Court held that making ESA payments contingent on a release violated the ESA. The court then ordered the employer to pay the employee full reasonable notice damages plus $10,000 in punitive damages as punishment for its bad faith conduct.

Similarly, in Thompson v. Revolution Resource Recovery (2025, B.C. Supreme Court), a company tried to make signing a release mandatory just to receive the employee’s basic termination pay. The worker refused to sign, and the employer withheld her statutory termination pay. The court found this conduct reprehensible and awarded the employee five months’ pay plus $25,000 in punitive damages. The court stressed that employers cannot use statutory minimum obligations as leverage for a release.

In Timmins v. Artisan Cells (2025), an Ontario executive had a contract promising at least three months’ pay if let go without cause. On termination, the company offered him only one week’s pay plus some extras on condition that he sign a full release. This was far below what the contract and common law entitled him to. The employee did not sign, and he sued. The court found that by trying to withhold even the contractually guaranteed severance unless he signed, the employer had breached the contract. The result was that the employee was awarded nine months’ pay in common law notice, totaling about $456,000. The employer’s attempt to hold severance hostage backfired badly.

The lesson from these cases is simple: you cannot be forced to give up your rights under pressure. If an employer tries to strong-arm you with an unfair deadline or by withholding your minimum pay, the law can come down against them. Your statutory minimum severance pay is guaranteed, and any extra offer for a release should be a fair exchange — not extortion.

Take Your Time to Get Advice (Your Future Deserves It)

When you’re presented with a termination letter and release, it’s normal to feel urgency or anxiety. But remember, you don’t have to rush. In most cases, you have a two-year window to pursue a wrongful dismissal claim, so a few days or weeks to consult a professional is absolutely reasonable. Employers actually expect that you may seek legal advice or even negotiate — you’re not being difficult by doing so. You’re exercising your rights.

Consulting an employment lawyer is one of the best steps you can take after a dismissal. An experienced lawyer can review your severance package, explain your rights in plain language, and advise if the offer is fair or if you’re entitled to more. It’s crucial to get this independent legal advice before signing anything. Once you sign a release, you’re typically waiving your right to claim any further compensation — so you want to be very sure you’re comfortable with the deal.

Keep in mind, each case is unique. A package that was fair for your co-worker might not be fair for you if your circumstances differ. That’s why personalized advice is important. If the package doesn’t account for your specific factors, such as your length of service or difficulty finding new work, you might have a wrongful dismissal claim and be owed more.

Practical tip: Politely tell your employer that you need time to review the offer or that you intend to seek legal advice. Most reasonable employers understand this. Sometimes, your lawyer can even request a deadline extension. The pressure might feel intense, but remember that a few days of careful consideration can make a huge difference to your financial and legal outcome.

You Can Negotiate — It’s Not “Take It or Leave It”

Many people mistakenly think the severance offer is non-negotiable — that they must either sign by the deadline or walk away with nothing. This isn’t true. Unless you’ve agreed otherwise in a contract, you can negotiate for a better package. In fact, negotiation is common. Employers will often start with a lower offer expecting some back-and-forth. You have the right to respectfully push for what you feel is fair.

How do you approach it? First, get informed with legal advice. Once you know what you’re likely entitled to, you or your lawyer can respond to the employer. This might involve a counter-offer or a demand letter outlining what you seek. For example, if you believe the offer ignored your bonus or commissions, or didn’t give enough weeks per year of service, these points can be raised in negotiations. Sometimes, just demonstrating that you know your rights can lead the employer to improve their offer.

If negotiation doesn’t work out, legal action is a last resort — but the vast majority of claims settle before ever going to court. Remember, you have up to two years in most provinces to start a claim for wrongful dismissal, so you have time to attempt an amicable resolution first.

Throughout this process, stay calm and professional. Document all communications with the employer. Do not feel pressured to “sign now, explain later.” Once you sign that release, it’s very hard to undo it. Courts will only set aside a signed release in rare cases, such as if you signed under extreme duress or without any time to consult. It’s far better to not sign until you’re sure.

Quick Steps to Follow If You’re Dismissed (Non-Union) and Given a Release

Stay Calm and Professional: You can acknowledge receipt of the documents without agreeing to anything on the spot.

Do Not Feel Obligated to Sign Immediately: You are allowed time to review the offer. The law doesn’t force you to sign by the employer’s deadline.

Gather Documents: Take home a copy of the termination letter, the release, and any other papers. Note any verbal promises made.

Consult an Employment Lawyer: Reach out for legal advice. Many lawyers offer an initial consultation.

Don’t Ignore Minimums: Ensure the employer pays you the unconditional minimum owed, such as wages, vacation pay, and statutory notice.

Consider Your Response Strategically: With your lawyer’s help, decide whether to negotiate, accept, or pursue a claim.

Take Care of Yourself: Job loss is tough. Lean on support and remember this is about securing your financial future.

Recent Cases: Why Deadlines and Pressure Tactics Don’t Hold Up

It might help to know you’re not alone in facing these situations — and courts have been siding with employees on these issues. Here’s a recap of the lessons from recent decisions in 2024 and 2025:

Wilds v. 1959612 Ontario Inc. (2024): Employer insisted on a signed release before paying even the minimum termination pay. The court called this illegal, ordered proper notice pay to the employee, and awarded punitive damages. Deadline or no deadline, an employer cannot withhold your basic owed pay.

Thompson v. Revolution (2025, B.C.): Employer gave a short severance offer with a release and refused to pay when the employee declined. The court awarded five months’ pay plus $25,000 in punitive damages, stressing that statutory minimum pay cannot be used as leverage for a release.

Timmins v. Artisan Labs (2025, Ontario): Employer offered less than the contract guaranteed and tied it to a release. The court awarded nine months’ pay, far above the contract minimum, because the employer’s tactic amounted to a breach.

For non-unionized employees across Canada, these cases reinforce a common theme: the law protects your right to a fair severance and the freedom to get advice, even if your employer sets a tight deadline. Courts will not enforce a release obtained through illegal pressure or by withholding what you’re owed.

Final Thoughts: You’re in Control of Your Decision

Facing a termination and a looming release-signing deadline is stressful. But knowledge is power. Know that you cannot be forced to sign away your rights on the spot, and that deadline may be more bark than bite. Give yourself permission to pause, consult with a lawyer, and make a decision that’s right for you. Often, taking that time leads to a better outcome — whether it’s negotiating a higher severance or simply having peace of mind that what you’re accepting is fair.

Above all, remember that you have rights as an employee, and those rights don’t disappear just because you’ve been handed a pen and a severance offer. Stay informed, stay calm, and get the support you need.

Disclaimer: This article is for general informational purposes and is not legal advice. Every individual’s situation is different, and outcomes can depend on specific facts and applicable laws. If you have been dismissed from your job, you should seek advice from a qualified employment lawyer who can assess your case. This post focuses on non-unionized employees; if you are in a union, consult your union representative, as different rules apply.