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Tuesday, May 26, 2026

Can a company use AI to determine who should be fired? - Samfiru Tumarkin LLP

A growing number of companies in Canada are using artificial intelligence (AI) to fire employees, according to a new poll.

Capterra, a software company based in Virginia, shared results from a survey that looked at how businesses are using AI. The survey was taken by 1,002 Canadians aged 18 to 65. They worked in part- and full-time roles for small to mid-sized employers.

Some key takeaways from the survey include:

  • One in five businesses are using AI in the their HR department
  • Eight per cent said their employer is using AI when deciding to fire staff
  • More than half of workers are not happy with allowing AI to make the call on layoffs
  • 30 per cent of respondents would feel “very uncomfortable” if AI chose which employees to lay off
  • 75 per cent of employees said they could not trust AI to fire someone
  • 35 per cent said if AI was in charge of firing employees, they would alter their workplace behaviour, including developing new skills, becoming more involved in projects, and improving key areas of performance

Can an employer use AI to decide who to fire?

Yes. In Canada, employers can use AI software to decide which employees to let go.

Generally speaking, a company can fire an employee at any time and for any reason. This is called a termination without cause.

When this type of termination, or layoff, is triggered, the employer must provide the outgoing employee with a full severance packageas much as 24 months’ pay.

Failure to give an employee proper severance pay when...



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