Canada: Redundancy/Layoff

Canada's federal government has announced a $3.5 billion rapid response support package in anticipation of retaliatory tariffs against the United States, introducing new temporary employment insurance measures and workforce retention programs. The package extends EI benefits, waives waiting periods, and creates funding opportunities for employers to retain and retrain workers rather than implement large-scale layoffs.

Canada's federal government has announced significant temporary changes to Employment Insurance in response to escalating U.S. tariffs, including extended benefit periods and new flexibility for workers who voluntarily left previous jobs. These measures, part of a $7.5-billion support package, will directly impact how Canadian employers navigate workforce decisions during the trade dispute.

Ontario employers can place employees on temporary layoffs under specific circumstances, but the legality depends on employment contracts, statutory limits, and common law rights. Understanding the difference between lawful temporary layoffs and constructive dismissal is crucial, as calling a decision a "layoff" doesn't automatically protect employers from termination obligations or prevent employees from claiming wrongful dismissal.

On May 16, 2025, the Tribunal administratif du travail (the "Tribunal") rendered a significant decision addressing the rights of employees in the context of a business sale...

On 10 October 2024, the Government published the Employment Rights Bill (ERB) 2024-2025, promised within the first 100 days of the new Parliament with reforms including measures...

In Canada, Employment Insurance ("EI") provides temporary income support to unemployed individuals as they search for new employment.

On May 28, 2025, the Ontario government announced that it had tabled the Working for Workers Seven Act, 2025 (the "Act")...

On May 28, 2025, the Government of Ontario introduced Bill 30, Working for Workers Seven Act, 2025 (Bill 30), representing the latest addition to a series of legislative initiatives...

In the recent case of Bertsch v. Datastealth Inc., 2025 ONCA 379 ["Bertsch"], the Ontario Court of Appeal (the "ONCA") upheld the lower court's decision that held a termination clause...