Bell Canada, Canada Post among those using voluntary separation agreements to reduce workforce — but is it right for your organization?
Over the course of 2025, some Canadian organizations have announced that they’re relying on voluntary exit programs (VEPs) to encourage employees to leave rather than layoffs or mass terminations.
Bell Canada’s “voluntary separation program,” Canada Post’s recent announcement that it will shrink its workforce, YouTube’s AI-driven restructuring in the U.S., and voluntary exit offers at post-secondary institutions such as Niagara College, Conestoga College, and York University have all put voluntary exit programs into the spotlight.
As organizations grapple with financial pressures, technological disruption, and demographic shifts, HR leaders have a few factors to consider in contemplating voluntary exit strategies for employees.
The rationale for offering VEPs is rooted in risk management and operational flexibility, according to Christopher Sinal, a management-side labour and employment lawyer at Siskinds Law Firm in London, Ont.
“Ultimately, it’s about mitigating two risks — one is obviously the legal obligations and costs associated with notice obligations you might have to those employees or other obligations regarding the end of their employment, and the other is balancing that against the operational needs of the organization.”
Recent announcements underscore these pressures. Bell Canada’s February 2025...
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