When organizations restructure, the human impact is immediate and significant. In Ontario, employers contemplating a large-scale layoff must navigate a detailed framework of Employment Standards Act requirements, collective agreement obligations (where applicable), and, if the business is federally regulated, Canada Labour Code (CLC) rules. Recent headlines underscore the stakes: General Motors’ decision affecting the CAMI facility in Ingersoll and Rogers Communications’ reductions in customer-service roles prompted difficult transitions for large employee groups and their communities. These examples are reminders that the legal and operational planning for a mass layoff must begin well before any announcement.
Why “Mass Termination” Status Matters in Ontario
Section 58 of Ontario’s Employment Standards Act (ESA) has special rules for “mass terminations.” Although not expressly called by that term, a mass termination occurs when an employer terminates the employment of 50 or more employees at an establishment within the same four-week period. An “establishment” is the location where the employer carries on business. Separate locations can constitute one “establishment” if they are located in the same municipality or if one or more employees have seniority rights that apply to multiple locations under a written contract and that employee(s) can displace another employee.
This four-week window under section 58 is rolling; the mass-termination rules are triggered once 50 terminations occur within that span. The ESA’s group notice periods replace the usual individual notice rules when a mass termination is triggered. As per Ontario Regulation 288/01, employers must provide at least 8 weeks’ notice if 50–199 employees are being terminated, 12 weeks for 200–499, and 16 weeks for 500 or more. Employers may provide working notice or pay in lieu, but the length of group notice is driven by headcount rather than service length.
Form 1 and When Notice Really Starts
Ontario’s process requires more than just telling employees. For mass terminations, the employer must file Form 1 (Notice of Termination of Employment) with the Director of Employment Standards, post a copy in the workplace, and give a copy to each affected employee. Crucially, the statutory notice period does not begin until the Director receives the completed Form 1. Failing to file properly can delay the notice clock and expose the organization to compliance risk.
Do Remote Workers Count Toward the 50?
Yes. The province has clarified that remote employees are included when counting whether the 50-employee threshold has been met for mass-termination purposes. This matters for hybrid or distributed teams and can push a restructuring over the threshold even if fewer than 50 on-site workers are affected.
What You Must Give Employees on Day One of the Notice Period
Beyond Form 1, Ontario added a practical support requirement: when a mass termination is initiated, employers must provide affected employees with information about provincially available employment services (e.g., Employment Ontario resources) at the outset of the notice period. Build this into your checklist and have the materials ready to distribute at the announcement.
Benefits Continuation During ESA Notice
Whether you provide working notice or pay in lieu, you must maintain benefit plan contributions (e.g., health, dental, life and disability) through the ESA notice period. Cutting off benefits too soon is a common misstep that can lead to Ministry orders and civil claims. Ensure your carrier understands “notice-only” status and that continuation is administratively feasible before you announce.
Termination Pay vs. Severance Pay: Distinct Entitlements
In Ontario, termination pay compensates employees when their employment ends without sufficient written notice. Under the Employment Standards Act, employers must provide either working notice or termination pay in lieu, calculated at one week of regular wages per completed year of service, to a maximum of 8 weeks. As mentioned above, special notice requirements apply in cases of mass termination.
Severance pay, also governed by the ESA, is a separate entitlement for long-service employees (those with at least five years of service) where the employer either (a) has a payroll of $2.5 million or more in Ontario, or (b) permanently discontinues all or part of its business and severs 50 or more employees within six months at the same establishment. Severance is calculated at one week of regular wages per completed year of service, plus the pro-rated amount for any additional months, up to 26 weeks. Severance pay is in addition to termination pay or notice.
“Temporary Layoff” vs. Termination
Employers sometimes hope a “temporary layoff” will avoid termination entitlements. Under the ESA, temporary layoff rules are narrow and, unless amended by contract, can quickly convert into terminations with full ESA consequences. Where an employer is federally regulated, different thresholds and definitions apply under the Canada Labour Code and related regulations. Treat temporary layoff strategies with caution and verify your industry’s regime.
Federally Regulated Employers and the Canada Labour Code Group-Termination Regime
Some high-profile employers in Canada, including telecommunications companies, are federally regulated and, therefore, governed by the Canada Labour Code (CLC) rather than the Employment Standards Act for minimum standards. Under the CLC, a group termination occurs when 50 or more employees at an industrial establishment are terminated within any four-week period. The employer must give 16 weeks’ written notice of the group termination to the Head of Compliance and Enforcement and provide copies to designated recipients. Individual notice obligations still apply.
The CLC also obliges the employer to establish a joint planning committee promptly after giving notice. This committee, composed of employer and employee representatives, develops an “adjustment program” within six weeks to reduce the need for terminations or, where inevitable, mitigate impacts and assist with re-employment. The Minister can appoint an arbitrator if the program stalls. This is a critical, time-bound governance step that federally regulated employers must not overlook.
Recent Large-Scale Layoffs: GM and Rogers
The GM case in Ingersoll illustrates how market shifts can ripple through a community and prompt significant production changes and layoffs. This spring, GM announced it would pause assembly at the CAMI plant for extended periods in 2025 and that BrightDrop/Chevy electric van production would cease. Local leaders and workers immediately focused on employment impacts, as a provincially-regulated automotive employer facing a mass termination in Ontario would need to determine whether headcount within any four-week window hits 50, file Form 1, ensure the notice clock starts correctly, and provide extended group notice and benefits continuation. Severance pay may also apply depending on payroll size or discontinuance criteria.
Rogers’ layoffs in early 2025 were framed as a “small percentage” reduction in customer-service roles as the company invested in digital tools and self-serve channels. Because telecoms are typically federally regulated, reductions of 50 or more within a four-week span at an industrial establishment would trigger the Canada Labour Code’s 16-week group-termination notice, a written benefits statement for affected employees, and the creation of a joint planning committee. Even when numbers fall below the 50-employee threshold, the CLC’s individual notice and other minimum standards still apply.
Unions and Collective Agreements
In unionized workplaces, collective agreements overlay ESA or CLC minimums. Many agreements include bumping and recall rights, wage-protection provisions, and consultation requirements that affect the sequence and scope of layoffs. Under the CLC, group-termination notice must be copied to any union representing affected employees, and the joint planning committee must meaningfully include employee representatives. Employers should audit the collective agreement well in advance to stage the announcement, bumping, and placement processes lawfully and to align with any early-retirement, redeployment, or severance-enhancement programs contemplated by the adjustment plan.
The Bottom Line of Mass Terminations in Ontario
Large-scale layoffs require more than a headcount decision; they demand a legally precise, human-centred process. Ontario employers triggering mass-termination rules must file Form 1, provide extended group notice, maintain benefits, and, where applicable, pay ESA severance in addition to termination entitlements. Federally regulated employers must follow the CLC’s group-termination regime, including a 16-week notice and a joint planning committee. Using recent examples, from GM’s CAMI-related changes to Rogers’ customer-service reductions, organizations can see how fast business realities can change and how important it is to have a compliant, respectful plan for affected employees.
Contact Willis Business Law in Windsor-Essex County for Comprehensive Employment & Labour Law Advice
If your organization is planning a large-scale restructuring, Willis Business Law can help ensure you understand your legal obligations under Ontario’s Employment Standards Act or the Canada Labour Code. Our employment and labour lawyers help employers navigate complex layoff and termination processes, minimize compliance risk, and protect both your business and your employees. Contact us online or call (519) 945-5470 for strategic guidance on managing workforce transitions lawfully and effectively.