St. Joseph’s Health System Layoffs 2026: Severance Pay & Employee Rights

St. Joseph’s Healthcare Hamilton, owned by St. Joseph’s Health System, announced on July 8, 2026 that it’s eliminating approximately 24 positions.

“We are currently forecasting a [nearly $18.7-million deficit] for the 2026-27 year,” Dr. Mike Heenan, president and CEO of the hospital network, said in a statement.

“As a result, we must make difficult but necessary decisions to strengthen our financial sustainability and protect our ability to continue delivering high-quality care for our community in the years ahead.”

Heenan clarified that 11 vacant positions and 13 non-vacant roles are being cut.

If you’re a non-unionized worker or manager at St. Joseph’s Health System, which is a provincially regulated employer, understanding these developments is the first step in ensuring your legal rights are protected during this period of restructuring.

List of Member Organizations

• St. Joseph’s Healthcare Hamilton
• St. Joseph’s Healthcare Centre, Guelph
• St. Joseph’s Healthcare Centre, Brantford (SJLC)
• St. Joseph’s Villa, Dundas
• St. Joseph’s Home Care
• St. Mary’s Health

Your Rights as a Non-Unionized Employee

Whether your departure is labelled a “layoff,” “restructuring,” or a “voluntary package,” your legal rights are governed by Canadian common law.

How Severance Pay Works

For non-unionized staff and managers at St. Joseph’s Health System, severance pay in Ontario isn’t determined by a single internal policy.

Instead, it’s based on the unique circumstances of your situation:

• The 24-Month rule: Depending on your age, length of service, and the nature of your role, you may be entitled to up to 24 months of severance pay.
• Managerial complexity: For managers, severance must often account for bonuses, RSUs, and stock options.
• Provincially regulated status: Because St. Joseph’s Health System is a provincially regulated employer, specific rules under Ontario’s Employment Standards Act (ESA) apply alongside common law standards.

Defining Wrongful Dismissal in Ontario

A “wrongful dismissal” is a specific legal term. It occurs whenever an employer in Ontario terminates a non-unionized worker without “just cause” but fails to provide the proper amount of severance pay.

This isn’t a reflection of the company’s intent, but rather a calculation of whether the package meets the high standards set by Canadian courts.

If an employment contract’s termination clause is unenforceable, or if a “temporary layoff” is implemented without a prior written agreement, an employee may have a claim for full severance.

Recommended Steps for Affected Staff

If you’ve been notified of job loss or offered a “voluntary departure” package at St. Joseph’s Health System:

1. Don’t sign anything immediately: You’re legally entitled to a reasonable period to review any offer. Signing a release prematurely can waive your right to pursue full compensation.
2. Use the Severance Pay Calculator: Get an anonymous, instant estimate of your entitlements.
3. Check your compensation: Ensure your offer includes all variable pay, including bonuses and benefits.
4. Seek legal advice: An experienced employment lawyer can ensure that you receive fair compensation.

St. Joseph’s Health System Layoffs: Frequently Asked Questions

Are layoffs at St. Joseph’s Health System permanent?

For non-unionized employees, a layoff is typically treated as a permanent termination of employment requiring full severance.

Can a manager at St. Joseph’s Health System negotiate a better deal?

Yes. Initial offers from large employers often focus on minimum standards rather than full common law entitlements.

Does St. Joseph’s Health System have to include bonuses in severance?

Often yes — especially if bonuses were a regular part of compensation.

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Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Ontario. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.