What should we do if a worker rejects ‘reasonable’ severance?

Should we cave and offer the extra notice? Or hold our ground? What might happen if it goes to trial?
By Madeleine Loewenberg
|Canadian Employment Law Today

Question:

A worker we fired without cause is refusing to accept the severance package we offered. He has been with the company for about eight years, and we're offering him six months' pay plus a good reference and assistance in finding another job. We're even letting him keep the company laptop and Internet access until the end of the notice period to assist him in his job search. But he's demanding one years' pay or else he'll sue for wrongful dismissal. Should we cave and offer the extra notice? Or hold our ground? What might happen if it goes to trial? We think the offer is very reasonable.

Answer: