KidsAbility Layoffs 2026: What’s Happening & Severance Rights

KidsAbility, an Ontario-based organization that helps families of children with complex and special needs with various forms of therapy, is cutting approximately 21 jobs — effective May 10, 2026.

In a statement to CBC News, management said the workforce reduction is “a result our efforts to responsibly align our operations with available resources and service needs.”

The bombshell update comes just months after KidsAbility let 37 employees go in Oct. 2025.

This page explains:

• What’s happening with layoffs at KidsAbility
• Whether a layoff at KidsAbility is permanent
• How much severance employees at KidsAbility may be owed
• What to do before signing a severance offer

Is a Layoff at KidsAbility Temporary or Permanent?

For non-unionized employees at KidsAbility, 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 KidsAbility 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 Staff at KidsAbility

Non-unionized employees, including those at KidsAbility, 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

It’s not uncommon for employees at KidsAbility to 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 KidsAbility Layoffs

A wrongful dismissal occurs when major employers, including KidsAbility, 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
• KidsAbility labelled your termination a “temporary layoff” without contractual authority

Large-scale layoffs at KidsAbility don’t reduce their legal obligations.

Laid Off at KidsAbility? Next Steps

If you’ve been laid off at KidsAbility:

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

KidsAbility Layoffs: Frequently Asked Questions

How much severance can employees at KidsAbility receive?

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

Are layoffs at KidsAbility permanent?

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

Does KidsAbility have to include bonuses in severance?

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

Can KidsAbility terminate employees on leave?

This can raise serious wrongful dismissal and human rights issues.

Can employment lawyers represent unionized staff at KidsAbility?

No. Unionized employees at KidsAbility must go through their union.

Lost Your Job? Get Help Now

If KidsAbility 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.