The Rights of Employees During Company Restructuring or Downsizing

When a company undergoes restructuring or downsizing, it often results in layoffs, reduced hours, or major shifts in roles. For employees in Ontario, it’s important to understand your rights during these transitions to ensure fair treatment and compensation.

Under Ontario’s Employment Standards Act (ESA), employers must provide proper notice or pay in lieu of notice if an employee is terminated without cause. The amount of notice depends on the length of employment. In addition to ESA minimums, employees may also be entitled to common law notice, which is often significantly higher.

If a group of employees is laid off (typically 50 or more within a 4-week period), the employer must also follow rules related to mass termination, including giving notice to the Ministry of Labour and affected employees.

Employees may be offered severance packages. It’s important to review these carefully and consider whether they meet legal minimums and your personal entitlements. You are not required to sign a severance offer immediately, and you have the right to seek legal advice before accepting.

If restructuring results in a substantial change to your job duties, location, or compensation, it may be considered a constructive dismissal — a situation where you are effectively forced to resign due to significant negative changes to your employment terms.

If your employment has been affected by restructuring or layoffs, contact Hilborn and Konduros in Cambridge, Ontario for expert guidance.