With continued market volatility, ongoing supply chain disruptions, and global economic uncertainty driven by tariffs and geopolitical tensions, many Canadian companies are making difficult decisions—including workforce reductions. 

For employees in Ontario, being part of a group layoff (also called a mass termination) is a jarring experience and can leave you thinking that since you were not fired personally, that your rights are blurred out because of the collective way you were laid off. But while you may find yourself feeling lost in a sea of others in a similar situation at your company, your individual legal rights do not disappear. What’s more, because you were laid off as part of a group, you actually have additional rights you may not be aware of, which increase exponentially along with the number of employees laid off at the same time as you.

Understanding what you’re entitled to under Ontario provincial and the broader Canadian federal law can help you navigate this challenging chapter of your life—and potentially avoid being taken advantage of during a vulnerable moment. You are not just a number.

What Is a Group Termination?

Under Ontario’s Employment Standards Act, 2000 (ESA), a group termination occurs when an employer terminates 50 or more employees at an establishment within a four-week period. This triggers specific obligations for the employer, above and beyond what applies in a typical individual termination.

The relevant provisions are found in Section 58 of the ESA. For group terminations, employers must provide:

• Notice to the Ministry of Labour, Immigration, Training and Skills Development (MLITSD) using Form 1 (Notice of Termination of Employment);
• Extended notice periods for affected employees;
• Continuation of benefits throughout the statutory notice period.
  

Notice Periods in a Group Termination

Employees in a group termination are entitled to longer notice periods than individuals terminated in isolation. Here’s how the ESA outlines notice entitlements:

• 50 to 199 employees terminated: 8 weeks’ notice
• 200 to 499 employees terminated: 12 weeks’ notice
• 500 or more employees terminated: 16 weeks’ notice
  

This notice can be working notice or pay in lieu thereof—meaning your employer may choose to pay you instead of requiring you to work through the notice period.

It’s important to note that these are minimum statutory entitlements. Depending on the terms of your contract and your common law rights, you may be entitled to significantly more compensation.

Common Law Notice: A Higher Bar

While the ESA sets the floor for termination notice, common law may set a higher bar. If your employment contract doesn’t limit you to ESA minimums—and many contracts fail to do this correctly—you may be entitled to common law reasonable notice, which is assessed based primarily on:

• Your age
• Length of service
• Nature of your role
• Availability of similar employment

In many cases, courts have awarded employees months more pay than ESA requires, especially where the terminated employee is older or in a specialized or senior role.

In the context of a mass layoff, employers may offer severance packages quickly and encourage you to sign off. It’s crucial not to accept any offer without first seeking legal advice. You may be signing away substantial additional entitlements.

Severance Pay: Are You Eligible?

In Ontario, severance pay is distinct from notice pay. According to Section 64 of the ESA, severance pay applies if:

• You have five or more years of service, and;
• The employer has a payroll of at least $2.5 million, or;
• The termination involves 50 or more employees within a six-month period due to a business closure.
  

Eligible employees are entitled to one week of severance pay per year of service, up to a maximum of 26 weeks.

More details can be found at Ontario.ca – Severance Pay

Special Rules Under the Federal Labour Code

Not all employees in Ontario are governed by provincial law. If you work in a federally regulated industry—such as banking, telecommunications, or transportation—you fall under the Canada Labour Code (CLC), not the ESA.

The CLC also contains specific rules around group terminations, notably:

• Employers must give at least 16 weeks’ written notice to the federal Minister of Labour before a group termination.
• A Joint Planning Committee must be established to mitigate the impact on employees.
• Employers are encouraged (and in some cases required) to work with affected employees on relocation, retraining, or alternative employment.
  

You can read more at the federal government’s site: Canada.ca – Group Terminations

Economic Pressures Do Not Eliminate Legal Obligations

With so many companies facing economic headwinds—be it from rising tariffs, inventory delays, or interest rate hikes—employers may attempt to frame layoffs as unavoidable acts of economic necessity. But even in tough times, employers must comply with legal requirements. Financial hardship does not excuse an employer from paying appropriate notice or severance.

In fact, economic volatility can make common law notice even more generous. If the job market is tight and it’s objectively harder to find comparable work, courts may extend the notice period accordingly.

Don’t Sign Under Pressure

One of the most common missteps we see is employees signing termination packages under duress—often with deadlines of a few days or even hours. Courts have recognized that signing under pressure may invalidate a release if the person didn’t have time to consult counsel or understand their rights.

In Ontario, courts generally expect employees to have had an opportunity to receive independent legal advice before signing away their rights. If you signed an agreement without that opportunity, all may not be lost.

Final Thoughts: Seek Legal Advice Early

If you’ve been terminated as part of a group layoff, don’t assume the employer’s offer is the best you can get. In many cases, group layoffs create confusion and lead to mistakes in how packages are calculated. If your contract is vague or silent on notice, or if it was signed years ago, you could be entitled to much more than the ESA minimums.

This article is for informational purposes only and does not constitute legal advice. For personalized legal guidance, please consult with a qualified employment lawyer.

Vice & Hunter LLP is a full-service law firm based in Ottawa, Ontario. We provide legal services to individuals, businesses, and institutions throughout Ontario. Our team of experienced lawyers offers a wide range of legal services, including employment law, litigation, real estate, and more. Contact us today to learn how we can assist you with your legal needs.​