Does my employer have to provide me with a severance package?

On Behalf of | Aug 17, 2022 | Employment |

A severance package is a payment that you receive when leaving a job. It may also include some additional benefits.

The Department of Industrial Relations explains there is no law requiring an employer to provide a severance package. If you get an offer for one, that is completely up to the employer. You may also ask for one as there is no law saying you cannot do that.

Important points

If you want to ask for a severance package, you need to be ready to negotiate, especially if your employer did not offer it to you. Be ready to give and take a little to come to an agreement. You may not end up with exactly what you want, but if severance is important to you, it is essential to be willing to compromise.


If you have a contract, you may have a clause in there that will promise a severance. This is the only situation where your employer is legally obligated to give you one. Even then, there may be wiggle room for the employer to craft it in whatever way it desires. So, you will still need to be ready to negotiate.

Final word

The bottom line when it comes to severance packages is that you walk away happy or at least satisfied with the deal you reach. The ability to reach a favorable agreement may depend on why you are leaving the job. If the employer is forcing you out because you do not want to leave, you may have more leverage to get a better deal, but if you are leaving under more agreeable terms, you may lose some of that leverage. So, keep the situation in mind when you go into the process of asking for a package.