Signs You May Be Getting a Severance Package in Canada
There are Signs You Might Be Headed for Severance Package (and How to Take Back Control)
Sometimes you just know. The vibe shifts. Conversations with your boss get vague. Your workload drops off a cliff. And suddenly, the word “severance” is pinging around in your brain like a screensaver you wish would go away.
If you’re wondering whether your job might be on the chopping block, you’re not alone and you’re not imagining it. Whether it’s company restructuring, budget cuts, or a quiet realignment of strategy, many employers offer severance packages to soften the landing.
But while the decision may be out of your hands, how you prepare for it? That’s all you. Here are the most common signs a severance package might be on the horizon, plus practical steps you can take to stay ready, secure, and empowered.
Your job feels like a lot like a ghost town
If you’ve found yourself sitting through meetings with little to contribute, or your main projects have been reassigned without much explanation, that’s not just bad management, it could be a scary foreshadowing.
When companies are planning layoffs, they often start shifting responsibilities before making announcements. That way, when someone leaves, the rest of the team isn’t left in the lurch. You might notice:
A sudden drop in your meeting invitations
Less involvement in long-term strategy discussions
Colleagues taking over parts of your usual workload
It’s not always personal, it’s often just logistics. But it’s a strong hint that your role might be considered “redundant.” If that word comes up in conversations, perk up your ears.
Want to make sure your contributions are on record? Start tracking wins and measurable impact.
Cost-cutting has become the corporate love language
Let’s be blunt: if your company has gone full Marie Kondo on the budget, it might not just be travel expenses they’re tidying up. Signs of broader financial issues include:
Unannounced budget reviews
“Efficiency audits” that sound scarier than they are
In many cases, employees will notice these shifts long before any formal announcement. If your department suddenly can't order coffee filters without approval from the CFO, layoffs may be on the horizon.
This is especially common in sectors hit by seasonal trends or industry-wide slowdowns. If you work in one of Canada’s more volatile industries, keep an eye on broader market indicators (and maybe bookmark this guide to job loss and mental health).
Plus, the political climate can absolutely play a role in job loss—sometimes in ways that feel far removed from your day-to-day work. Just look at the ripple effects of tariffs imposed on the U.S., which are now impacting various sectors across Canada.
From manufacturing to retail, international policy decisions can disrupt supply chains, increase costs, and force companies to restructure or reduce staff. It’s a reminder that economic shifts aren’t always local and they can hit jobs even when performance isn’t the problem.
HR is suddenly interested in your long-term goals
HR professionals are many things, but spontaneous is rarely one of them. If they suddenly want to know how you’re doing, or if they appear in meetings where they’ve never set foot before, it’s usually for a reason.
Watch out for:
“Development” chats that feel oddly non-committal
Requests for updated job descriptions
Reviews of your contract or vacation time
HR’s role is to manage risk, so if they’re popping up with questions about your role, tenure, or deliverables, it may mean they’re preparing for potential restructuring and associated severance payouts.
Need a quick primer on your rights? This Employment Standards Guide from the Government of Canada is a must-read. There is also provincial legislation that impacts workers.
You’re asked to help onboard someone… who’s job reminds you of yours
You know what they say: if it walks like a replacement and talks like a replacement... it might be your replacement.
If you’re being asked to train a new hire or cross-train someone on your responsibilities, especially without clear explanation, it’s worth paying attention. This tactic allows organizations to retain knowledge without explicitly saying that layoffs are coming.
Other signs:
The new hire's job title is... confusingly close to yours
You’re being asked to create documentation for processes only you handle
Management frames it as a “succession planning” exercise (yikes)
Take this as your cue to dust off your resume. You don’t need to panic yet, but preparation gives you power.
Your manager is a walking red flag
Managers aren’t always allowed to talk openly about impending layoffs, but you can usually see it in their behaviour. If your boss goes from overly involved to strangely silent, it could mean something’s brewing above their pay grade. Here’s what to watch for:
A sudden shift from active coaching to vague generalities
Less eye contact, fewer 1:1s
Vibes that scream “I know something I can’t tell you”
This isn’t always a sign of layoffs—but if you pair this with other clues (budget cuts, HR visits, project reassignment), it strengthens the case. Now’s a great time to update your LinkedIn profile and reconnect with old contacts.
The company is quietly falling apart
A little corporate turbulence is normal. But when leadership starts dodging questions, transparency dries up, and the company newsletter suddenly stops landing in your inbox, it’s time to raise an eyebrow.
Pay attention to:
Layoffs in other departments
Departures of senior leadership
Industry gossip about your company’s financial health
If you’re seeing this, don’t wait. Use it as motivation to get clarity on severance packages in Canada, including minimum standards, best practices, and negotiation tips.
What you can do to prepare for receiving a severance package
So you’ve spotted a few of these signs. What now?
1.Start job hunting quietly
It never hurts to explore your options. Browse inclusive jobs in Canada right here on HireDiverse.
2. Know your rights
Severance pay varies by province and by contract. Read up and consider speaking with an employment lawyer. An experienced lawyer can look at your circumstances, outline your legal rights, and advise you on whether further negotiation makes sense. Even a brief consultation can provide clarity and peace of mind while helping you avoid leaving behind compensation or benefits you may be entitled to.
3. Stay professional
Keep calm and respectful, even if you feel frustrated. Your exit will be remembered more than your performance, and professionalism helps preserve references, networks, and future opportunities.
4. Ask for everything in writing
If you do receive a severance offer, never sign on the spot. Take time to review, negotiate, and seek advice. Make sure to document any verbal conversations about severance by sending a follow-up email. This creates a written record of what was discussed and helps protect you if there’s any confusion later on.
Remember: a severance package isn’t a punishment, it’s a pivot point. And you get to decide what happens next.
Your job might end, but your career isn’t over
Let’s cut through the corporate speak: getting laid off sucks. But it’s also an incredibly common part of modern careers and sometimes, the push you didn’t know you needed.
Use this time to regroup, reflect, and take stock of what you want next. Whether it’s better leadership, more flexibility, or a mission that actually aligns with your values, you deserve a job that fits who you are now.
Checklist: how to spot layoff warning signs and prepare for severance
✔️ Early warning signs
Shifting workload, budget cuts, HR involvement, or vague behaviour from your manager.
✔️ Know your rights
Review employment standards in your province and considering a consultation with an employment lawyer.
✔️ Stay professional
Keep calm and respectful to protect your reputation, references, and network.
✔️ Ask for everything in writing
Never sign on the spot; document conversations and take time to review offers.
✔️ Track your contributions
Record wins, metrics, and achievements to strengthen your negotiation position.
✔️ Protect your wellbeing
Ask about extended health coverage, mental health resources, or transition support.
✔️ Plan your next chapter
Reflect on what you want from your career and using this pivot point to move toward a better fit.
✔️ Start job hunting quietly
Update your resume, refreshing your LinkedIn, and exploring inclusive opportunities
For more guidance on navigating job loss and negotiating fair packages, explore our severance resources.
Start your job search on HireDiverse today.
About HireDiverse
HireDiverse is Canada’s diversity and inclusion focused job board, built to support professionals from all backgrounds in finding meaningful work.
