Mass layoffs can be a devastating experience for employees, but in Ontario, the law provides protections to ensure fairness and transparency in such situations. Employers have specific obligations under the Employment Standards Act, 2000 (ESA) when conducting large-scale dismissals. Understanding these obligations can help employees navigate the process and safeguard their rights.

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What Constitutes a Mass Layoff?

A mass layoff, also known as a group termination, occurs when an employer terminates 50 or more employees within a four-week period at a single establishment. Unlike individual terminations, mass layoffs trigger additional legal requirements designed to protect affected workers.

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Employer Obligations in a Mass Layoff

When an employer decides to conduct a mass layoff, they must adhere to several key obligations:

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1. Notice of Termination

Employers must provide written notice of termination to all affected employees. The notice period required depends on the number of employees being laid off:

• 8 weeks for 50-199 employees.

• 12 weeks for 200-499 employees.

• 16 weeks for 500 or more employees.

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2. Notice can be provided as working notice, pay in lieu of notice, or a combination of both.

3. Notice to the Director of Employment Standards

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Employers must also provide written notice to the Director of Employment Standards at the Ministry of Labour. This notice must include:

• The number of employees affected.

• The reasons for the layoff.

• The expected termination date.

4. Severance Pay

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In addition to notice, eligible employees may be entitled to severance pay. To qualify, an employee must have:

• At least five years of service with the employer.

• Been employed at a company with a payroll of $2.5 million or more.

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5. Severance pay is calculated as one week’s pay per year of service, up to a maximum of 26 weeks.

6. Continuance of Benefits

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During the notice period, employers must continue to provide benefits such as health and dental coverage to employees as if they were still actively working.

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Employee Rights During Mass Layoffs

If you are affected by a mass layoff, you have specific rights under Ontario law:

• Minimum Entitlements: You are guaranteed at least the minimum notice and severance pay required under the ESA.

• Group Termination Notice: Employers must post a group termination notice in the workplace, ensuring employees are informed about the layoff.

• Fair Treatment: Employers must act in good faith, ensuring the process is conducted with transparency and respect.

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What to Do If You’re Affected

If you are part of a mass layoff, follow these steps to protect your interests:

1. Review Your Termination Package Ensure your package includes all entitlements under the ESA and any additional benefits outlined in your employment contract.

2. Consult an Employment Lawyer An employment lawyer can help determine whether your termination package is fair and negotiate better terms if necessary.

3. Apply for Employment Insurance (EI) If eligible, apply for EI benefits to help cover your living expenses while you search for new employment.

4. Seek Support Take advantage of any career transition or outplacement services offered by your employer. You can also explore government programs designed to assist laid-off workers.

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Consequences of Non-Compliance for Employers

Employers who fail to meet their obligations during a mass layoff may face penalties, including fines and orders to provide compensation to affected employees. Employees also have the right to file complaints with the Ministry of Labour or pursue legal action for wrongful dismissal.

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Free Consultation with Ottawa Employment Lawyers

Ontario’s laws provide critical protections for employees during mass layoffs, ensuring they receive fair notice, severance pay, and support. If you’re affected by a group termination, understanding your rights and seeking professional advice can help you navigate this challenging time and secure the compensation you deserve. Please do not hesitate to contact our experienced Ottawa employment lawyers for a free legal consultation. Randy Ai Law Office can be contacted at (343) 321-0800 or fill out the contact form.

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