Arthur Davis is the Vice President (Operations) of Creative Closets, a design firm specializing in the design of functional and creative closet and storage spaces for extremely large and high end homes. He has been employed with the company for 31 years. He is 62 years of age. Last Friday, January 22, 2021, Arthur was invited into a meeting with the President of Creative Closets. He was told that his position was no longer viable and he was being let go, as of that same day. Arthur was presented with a letter from the President which stated, in part, as follows:

Dear Mr. Davis: As of today, your services will no longer be required at Creative Closets. We appreciate the length of valuable service you have provided to Creative Closets and wish you every success in your future endeavours. In lieu of notice, Creative Closets is prepared to offer you a separation package on the following terms: You will be provided with 24 months' pay, either in the form of salary continuance or in a lump sum. Should you choose the salary continuance, your regular pay with appropriate deductions for income tax and all benefits, including your pension deductions, will continue to be deposited directly into your account for the next 24 months. Should you choose the lump sum option, your lump sum will be paid to you immediately, with appropriate tax deduction, as well as the commuted value of your pension contributions for the next 24 months. As you already meet the eligibility for full pension retirement, your pensionable earnings will be calculated by including the two years of salary you are about to receive. It is expected that your pension will start to be paid out to you as of February 1, 2023. We recommend that you take this offer to an independent lawyer of your own choosing. To that end, we enclose a cheque in the amount of $750 for you to seek independent legal advice. We ask that you consider this matter for no more than two weeks. We would like your response by Friday February 12, 2021.

You are the lawyer Mr. Davis has chosen to approach regarding this separation package offer. Please provide your written advice to Mr. Davis regarding this package.