If you've just been laid off in Canada, the next 90 days will determine whether the transition costs you 3 months of stress and you land cleanly — or 18 months of compounding financial damage you spend years recovering from.
The variables aren't your fault. They're decisions made in the first week, often by people in shock who just want the conversation to be over. This guide walks through what to do, in what order, and what mistakes the data shows cost the most.
Signing the severance offer in the first 48 hours. Almost every employment lawyer in Canada has the same observation: first offers are designed to be accepted under emotional pressure. The number is almost always negotiable. Saying "I'd like a few days to review this with my lawyer" — exactly that sentence — typically gets the offer raised before you've even paid for the lawyer.
Day 1-7: Stabilize, Don't Sign
The day you're laid off, you'll often be handed a severance package and asked to sign. The right answer is almost always "I need time to review this." Here's what to actually do in the first week.
1. Do not sign the severance offer on the day you receive it
Most provinces' employment standards give you weeks (sometimes months) to consider the offer. Verbal pressure to sign immediately is just that — pressure. The release you'd be signing typically waives all future claims for severance, vacation pay owed, bonus pro-rations, and other entitlements. Once signed, it's binding.
2. Apply for EI online, immediately
Even if you have severance pending, apply for Employment Insurance within the first 4 weeks of your last day worked. EI is paid in arrears — every week you delay applying is a week you don't get paid. The application is at canada.ca/ei. You'll need your Record of Employment (ROE), which your employer must file electronically with Service Canada within 5 days of your last day worked.
3. Continue any benefits you're entitled to
Most severance packages include some period of benefits continuation (often 30-90 days). Some provinces require employers to maintain group benefits during the statutory notice period. Don't cancel personal coverage until you understand what continues automatically.
4. Notify your spouse, your bank, and your most critical commitments
Spouse: align on the family financial plan. Bank: don't volunteer the news, but consider the impact on any pending mortgage or loan applications (lenders verify employment). Critical commitments: only those that genuinely can't be paused.
Day 7-30: Negotiate the Severance
This is the highest-leverage 30 minutes of your year. Severance offers in Canada are routinely 30-60% lower than what the affected employee would receive if they pushed back through proper channels. Most don't push back. Those who do, recover the difference.
The two regimes: Statutory minimum vs Common law
Provincial Employment Standards Acts set a legal MINIMUM (typically 1 week per year of service, capped at 8 weeks). Most non-unionized workers are also entitled to "common law" notice — typically 3-4 weeks per year of service, depending on age, position, length of service, and difficulty of finding comparable employment.
The employer's first offer almost always references the statutory minimum, not common law. This is where the gap is.
Get an employment lawyer before you respond
For any severance package over $20,000, talk to an employment lawyer before you respond. Most offer a free or fixed-fee initial consultation ($150-$300). They'll review the offer, calculate your common-law entitlement, and either send a counter-offer letter or coach you to send one. Their fee comes out of the increase they negotiate. Net cost to you: usually negative.
The counter-offer framework
A typical effective counter:
- Acknowledge receipt of the offer
- Note that you've consulted with employment counsel
- Reference your common-law entitlement (specific number)
- Request a higher figure (often 1.5-2× the original offer)
- Propose extended benefits continuation
- Request outplacement services if not included
- Set a 14-day response deadline
Day 30-90: The Job Search Plan
With severance negotiated and EI applied for, the next 60 days are about getting back to work. The math: average time to find a new role for mid-career Canadians is 4-7 months. Plan for the high end.
Resume + LinkedIn refresh, in that order
Update your resume first because the work clarifies your story. Then mirror it on LinkedIn. Most recruiters search LinkedIn first; outdated profiles get skipped. Aim for: 90%+ profile completeness, 500+ connections, an "Open to Work" status visible to recruiters only (not public).
Activate your network — the right way
Don't blast a "looking for work" message to your network. Personalized one-to-one messages to ~20 people you actually know convert at 10-20×. Ask for a 15-minute call, not "if you hear of anything." Specific ask, easy yes.
Apply systematically
5-10 quality applications per week, tracked in a spreadsheet. For each: company, role, application date, contact name, status, follow-up date. The spreadsheet is the difference between organized job seekers and overwhelmed ones.
Practice interview answers out loud
The "tell me about yourself" question and "why are you leaving your last role" question deserve 30-60 minutes of preparation each. Write the answer, say it out loud 10 times, refine. Most candidates wing it and lose offers they should win.
The 90-Day Budget
EI replaces 55% of insurable earnings up to a maximum (approximately $668/week in 2026). For most workers, that's a significant pay cut. The 90-day budget framework:
- Strip variable spending — restaurants, subscriptions, entertainment, travel — to the minimum you can sustain for 6 months
- Pause optional savings — RRSP contributions, automated investments — until you're working again
- Negotiate any large fixed costs — mortgage payment deferral programs exist at most major Canadian lenders for hardship cases
- Track every dollar — the actual numbers reduce anxiety dramatically vs. vague estimates
The Job Loss Handbook · Canadian Edition
The full 59-page guide: severance negotiation scripts, EI application walkthrough by province, 90-day budget framework, the resume + LinkedIn refresh playbook, and 5 ready-to-use templates including the severance offer review checklist and counter-offer email.
Frequently Asked Questions
How much severance am I entitled to in Canada?
Statutory minimum: typically 1 week per year of service (capped at 8 weeks). Common law (for most non-unionized workers): typically 3-4 weeks per year of service, factoring in age, position, and difficulty of finding comparable employment. The handbook walks through the calculation in detail.
When do I apply for EI?
Within 4 weeks of your last day worked, regardless of whether you have severance pending. EI is paid in arrears; delays in applying mean delays in payment. If you receive severance, EI may be deferred during the severance period (depends on how it's structured).
Can my employer fire me without notice?
Only for "cause" — gross misconduct, theft, etc. — and the bar is high. Most layoffs are "without cause," which means you're entitled to either notice (usually weeks of working through) OR pay in lieu of notice (severance). Pay in lieu is the standard practice.
Should I sign a non-compete or non-solicit clause as part of severance?
Read carefully. Many severance packages include broader restrictive covenants than the original employment contract. If you're being asked to agree to new restrictions in exchange for severance, that's a real negotiation point — additional compensation should accompany additional restrictions.