By acting proactively, documenting decisions, engaging in clear communication, involving legal counsel early, employers can significantly reduce exposure to legal disruption during restructuring.
Recent months have seen a notable uptick in layoffs across Canada, driven by factors such as global trade pressures, sector-specific downturns and structural shifts in business models. According to Statistics Canada, the layoff rate held at about 1.1 % in July, unchanged from the previous year, but the bulk of job losses occurred among younger workers (ages 15-24).
Beyond general data, select sectors are bearing particular pressure:
- In the energy sector, Imperial Oil Ltd. announced plans to cut roughly 20% of its workforce by 2027.
- Within telecom, Ericsson revealed job-cuts of approximately 100 technical positions in Canada.
- Ontario’s post-secondary institutions are facing steep job losses, with a union estimate of nearly 10,000 roles at risk amid sharp enrolment declines.
- Factors such as U.S. tariffs on Canadian goods are already affecting manufacturing, with the metals sector warning of impending layoffs.
- Within the consumer sector, Starbucks Corporation announced a major restructuring including store closures in Canada and layoffs of approximately 900 non-retail employees.
- Molson Coors Beverage Company revealed plans to cut around 400 salaried jobs in North America (including Canada), approximately 9% of its salaried workforce, as part of a cost-reduction strategy.
These developments underscore one critical message: even when the macro economy appears stable, specific businesses can face sudden restructuring, and both employers and workers must be ready.
Key Legal Considerations for Employers
Employers contemplating workforce reductions or facing sudden headcount losses must be mindful of several legal obligations:
- Notice and severance obligations: Reductions must comply with employment-standards laws, and common-law exposure may substantially exceed minimums.
- Consistency and documentation: Inconsistent treatment of employees or vague communications may heighten the risk of litigation (for example, claims of constructive dismissal or discrimination).
- Human-rights exposure: Where job losses disproportionately impact protected groups (by age, disability, etc.), human-rights claims are a genuine risk.
- Contractual clarity: Employers relying on termination or layoff clauses must confirm their enforceability by ensuring no breach of employment-standards laws.
- Legacy-contracts and union-issues: Especially in sectors undergoing tariffs or trade-impact, legacy obligations (e.g., collective agreements) must be carefully reviewed.
By acting proactively, documenting decisions, engaging in clear communication, involving legal counsel early, employers can significantly reduce exposure to legal disruption during restructuring.
What Workers Should Do If Their Role Is Impacted
For employees affected by job loss or restructuring, the path forward often involves immediate practical and legal-strategic steps:
- Review your employment contract carefully, especially any termination, notice or layoff clauses.
- Assess whether you’re being offered reasonable severance or notice-in-lieu by getting legal advice before signing anything.
- Document all job-search efforts and any offers of comparable employment (you may have an obligation to mitigation).
- Consider the broader picture: is your termination a standard layoff, or might it be construed as constructive dismissal or discriminatory termination?
- Seek advice early, the sooner you engage legal guidance, the better positioned you will be to protect your entitlements.
How Minken Employment Lawyers (1990) Can Help
Whether you are an employer structuring workforce changes, or a professional navigating the aftermath of a layoff, Minken Employment Lawyers (Est. 1990) offers trusted guidance. With more than three decades of experience, our team helps employers and workers alike manage notice, severance, employment contract issues and restructuring risk.
If you’re facing job loss, negotiating severance, or preparing for operational changes that could impact staffing, contact us today for a confidential consultation.
Contact Minken Employment Lawyers (Est. 1990) at 905-477-7011 or contact@minken.com to connect with our team.
“Your Workplace is Our Business” ™
Sign up for our Newsletter to learn about new Employment Law legislation and Court decisions impacting your workplace.
Copyrighted. Not to be copied or reproduced without express permission of Minken Employment Lawyers (Est. 1990) ©
Please note that this article is for informational purposes only and does not constitute legal advice or opinion.
Related Topics
- Canada’s EV Mandate: Economic Disruption and Massive Layoffs?
- Steady in the Storm: Navigating Layoffs Requiring Expert Legal Guidance in Uncertain Times
- Ontario Introduces Bill 30: What Employers Need to Know About the Working for Workers Seven Act, 2025