Voluntary Departure Packages: What to Know Before You Decide
Recent media coverage has drawn renewed attention to voluntary departure packages, sometimes called buyouts.
In April 2026, CBC News reported that Rogers Communications offered voluntary departure packages to a portion of its workforce as the company continues to adjust its operations and manage costs. While headlines like these can feel unsettling, voluntary departure packages are not uncommon and they do not automatically signal mass layoffs or an imminent collapse of a business.
That said, they do signal meaningful change. If you are offered a voluntary departure package, it is important to understand what it is, why it is being offered, and what accepting or declining could mean for you.
What is a voluntary departure package?
A voluntary departure package is an offer made by an employer to encourage employees to leave the company voluntarily, usually in exchange for a defined payment or set of benefits. These offers often arise during periods of restructuring, workforce reorganization, or financial uncertainty. In some cases, they may be offered when a company is trying to avoid involuntary layoffs or reduce costs in a measured way.
Unlike a termination package, a voluntary departure package is not triggered by an actual dismissal. The employment relationship continues unless and until the employee chooses to accept the offer. Because of that distinction, employees do not have an automatic legal entitlement to a specific voluntary package. It is typically a take it or leave it offer.
Why employers offer voluntary departure packages
From an employer’s perspective, voluntary departure packages can provide flexibility. They can reduce headcount while minimizing the legal and reputational risks that sometimes come with large‑scale layoffs. They can also allow employers to manage who leaves and when, especially if a company is trying to reshape its workforce or eliminate duplicate roles.
As seen in the recent Rogers coverage, these offers often emerge in industries facing economic pressure, technological change, or long‑term strategic shifts. Importantly, a voluntary departure program does not always mean that layoffs are inevitable, but it does mean the organization is evolving in a significant way.
Reasons some employees choose to accept a voluntary departure package
For some employees, accepting a voluntary departure package can feel like taking control in an uncertain situation. One of the biggest considerations is certainty now versus uncertainty later. If a company is restructuring, there may be questions about future roles, job security, or additional changes down the line. Accepting a package can provide clarity and allow you to plan your next step on your own timeline.
In situations where financial distress or insolvency is a possibility, timing can be critical. If an employer later becomes insolvent, employee claims for pay, severance, or other entitlements can be delayed or limited. Accepting a voluntary departure package before any insolvency may allow you to receive compensation while funds are still available.
There are also financial planning considerations. Receiving a lump sum earlier can provide opportunities to invest, retrain, or transition careers. The time value of money matters, and this is where advice from financial and tax professionals can be especially helpful.
For employees enrolled in a pension plan, there may sometimes be advantages depending on how the package is structured. In some cases, employers allow payments to be spread over a period that may extend pensionable service, though this depends entirely on the employer and the terms of the specific pension plan.
Reasons some employees choose to decline a voluntary departure package
Voluntary departure packages almost never reflect the full value of what an employee might be entitled to if they were terminated without cause in the future. By accepting a voluntary package, you are generally giving up the right to later claim termination or severance entitlements at common law or under statute.
Pension considerations can also cut the other way. If pensionable service cannot be extended or enhanced through the package, accepting early may reduce future pension benefits compared to remaining employed longer.
Another key factor is that voluntary departure packages are rarely negotiable. Because they are not termination packages, employees typically do not have a legal right to improved terms. The decision is usually binary: accept the offer as presented or decline it and remain employed.
That makes the decision highly personal and dependent on your role, your financial situation, your career goals, and your tolerance for risk.
Why legal and professional advice is essential
Voluntary departure packages require important decisions. The documents often include releases that limit future claims, strict deadlines for acceptance, and tax implications that can materially affect the value of the offer.
Even when an offer appears straightforward, its long‑term impact can be significant. A lawyer can help you understand what rights you are giving up, how the offer compares to potential future entitlements, and whether there are any risks you should be considering. Financial and tax advisors can help you assess how and when payments should be received and how they fit into your broader plan.
Final thoughts
Voluntary departure packages are a signal of change, not necessarily a cause for panic. As recent coverage shows, even large and well‑known organizations use them as part of ongoing business adjustments. Whether accepting one makes sense depends on your individual circumstances, not just the headline.
If you have been offered a voluntary departure package and are unsure what to do, getting informed advice early can help you make a confident decision. If you have questions about your rights or would like guidance on how a voluntary departure offer may affect you, our employment law team is here to help.