London Machinery Layoffs: Severance Pay in Canada & Employee Rights

London Machinery is reportedly cutting 50 jobs in London, Ont. and shifting work to its facility in Iowa.

“We’re not closing the London production facility. We remain committed to serving the Canadian market with production in London,” President Robert Moncham told The London Free Press.

“There will be a reduction in production…[US tariffs on Canadian goods] have changed things, so we have adjusted. Like every business in Canada, we had to adjust to a new reality.”

Right Lane, an industrial holding company based in Florida, acquired London Machinery from Oshkosh Corp. in 2023.

The Canada-US-Mexico Agreement (CUSMA) is expected to be renegotiated this summer.

This page explains:

• What’s happening with layoffs at London Machinery
• Who’s most affected
• Whether a layoff at London Machinery is permanent
• How much severance Canadian employees at London Machinery may be owed
• What to do before signing a severance offer

Who’s Affected by the Latest Round of Layoffs?

It remains unclear if both unionized and non-unionized employees at London Machinery are affected.

The company is a provincially regulated employer — meaning most non-unionized employees are governed provincial employment standards, not the Canada Labour Code.

Is a Layoff at London Machinery Temporary or Permanent?

For non-unionized employees at London Machinery, a layoff is almost always treated as a termination without cause, even if the following language is used:

• “Restructuring”
• “Reorganization”
• “Transformation”
• “Temporary layoff”

Unless your employment contract explicitly allows for London Machinery to temporarily lay you off, the company can’t place you on indefinite layoff without terminating your employment — meaning they must provide full severance pay.

Severance Pay for London Machinery Staff

In Canada, non-unionized employees, including those at London Machinery, are often owed far more severance pay than what’s outlined in their initial offer.

Severance is based on common law entitlements, not just minimum standards. Factors include:

• Age
• Length of service
• Position and seniority
• Availability of comparable jobs

In many cases, Canadian employees at London Machinery can be owed up to 24 months of compensation.

Severance may include:

• Base salary
• Continued benefits
• Bonus and incentive compensation
• Stock, equity, or RRSP contributions (where applicable)
• Vacation pay
• Other earned compensation

First offers often:

• Cover only minimum entitlements
• Exclude bonuses or incentives
• Impose short signing deadlines
• Undervalue long-service or senior employees

Severance Offers: Common Problems

Canadian employees affected by layoffs frequently report issues such as:

• Severance offers far below legal entitlements
• Missing or unclear compensation breakdowns
• Benefits cut off too early
• Bonuses excluded without justification
• “Temporary layoff” language used improperly
• Pressure to sign within 24–48 hours

Wrongful Dismissal and London Machinery Layoffs

A wrongful dismissal occurs when employers, including London Machinery, fail to provide full severance required under common law.

You may have a claim if:

• Your severance offer is too low
• A termination clause isn’t enforceable
• You were pressured to accept your severance offer on the spot
• Bonuses or benefits were excluded from your severance package
• You were terminated while on medical, parental, or disability leave
• London Machinery labelled your termination a “temporary layoff” without contractual authority

Large-scale layoffs at London Machinery don’t reduce their legal obligations in Canada.

Laid Off at London Machinery? Next Steps

If you’ve been laid off at London Machinery:

1. Don’t sign your severance offer immediately
2. Gather your employment contract, bonus plans, and benefits information
3. Use the Severance Pay Calculator to double-check your entitlements
4. Keep records of your role, compensation, and length of service
5. Speak with an employment lawyer before agreeing to anything

London Machinery Layoffs: Frequently Asked Questions

How much severance can London Machinery employees receive?

Up to 24 months — depending on age, service, and position.

Are layoffs at London Machinery permanent?

For non-unionized employees, yes. A layoff is typically a termination.

Does London Machinery have to include bonuses in severance?

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

Can London Machinery terminate employees on leave?

This can raise serious wrongful dismissal and human rights issues.

Can employment lawyers represent unionized London Machinery staff?

No. Unionized employees at London Machinery must go through their union.

Lost Your Job? Get Help Now

If London Machinery has laid you off, or offered a severance/buyout package, don’t do anything before seeking legal advice.

Samfiru Tumarkin LLP, one of Canada’s most reviewed employment law firms, has helped more than 50,000 Canadians secure the compensation they’re legally entitled to.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. 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.