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Sunday, June 22, 2025

Canada: Employees Should Know Their Rights Before Layoffs - SHRM

U.S. President Donald Trump and his tariff threats have dominated this country’s political and economic discussions for months. Canadian consumers and businesses have changed their purchasing habits — some perhaps forever — in a collective response to the tariffs, which were also at the forefront of the country’s federal election on April 28. But how have Trump’s economic policies impacted the Canadian workforce so far? And how should companies and their employees prepare?

The economic uncertainty alone has had a chilling effect on the Canadian economy, as many employers struggle to plan for the future. When tariffs were imposed on Canadian steel and aluminum on March 12, some companies started reducing their workforces in anticipation of the fallout. As early as Feb. 24, Canada Metal Processing Group announced a workforce reduction of 140 employees. Now that the tariffs are in place, we can expect further layoffs in the sector.

Canada’s automotive industry, one of the largest in Ontario and one with a significant presence in Quebec, was hit with 25% tariffs on April 2. In response, Stellantis, the world’s fourth-largest automaker, announced a two-week shutdown of its Windsor, Ontario, plant, along with layoffs affecting approximately 4,500 Canadian workers.

As more and more Canadian businesses are forced to consider layoffs, it is important for workers to understand their employment rights.

In Ontario, an employer cannot unilaterally place an employee on a layoff. They...



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