If your employer eliminates your job because of restructuring, you can still be entitled to severance.
Companies can reorganize, reduce staff and eliminate positions. But restructuring does not erase your employment rights, and an employer can’t use the word “restructuring” to avoid paying what you are owed.
Samfiru Tumarkin LLP helps non-unionized employees in Ontario, Alberta and British Columbia understand their rights when a job is eliminated, a role is restructured or employment ends because of company changes.
⚠️ Told your position was eliminated?
Do not assume the severance offer is fair just because the company says it is restructuring. Review the package before signing anything.
Reviewed by: Lior Samfiru, Employment Lawyer and National Co-Managing Partner
On This Page:
- 1. What Does Job Elimination Mean?
- 2. Can an Employer Eliminate Your Position?
- 3. Restructuring vs. Layoff
- 4. Your Job Exists Under a New Title
- 5. Asked to Reapply?
- 6. Offered a Lower-Paid Role
- 7. Wrongful Termination
- 8. Severance Rights
- 9. Medical Leave
- 10. Common Questions
What Does “Job Eliminated Due to Restructuring” Mean?
It means your employer has decided to remove your position as part of a business reorganization.
That can happen because of:
- Cost-cutting
- Company mergers
- Department changes
- Automation
- Outsourcing
- Reduced business activity
- Changes to staffing structure
Your employer may call it restructuring, downsizing, reorganization, role elimination or workforce reduction. The label does not determine your severance rights.
Can an Employer Eliminate Your Position?
Yes. An employer can eliminate a position for legitimate business reasons.
For a non-unionized employee, the main legal question is often not whether the company was allowed to restructure. It is whether the employee received the full notice or severance they are owed.
💡 Your employer does not need to prove that the restructuring was financially necessary to terminate your position without cause.
But it still has to respect your employment and human rights.
Is Restructuring the Same as a Layoff?
Not always. Restructuring describes a change to how a business is organized. A layoff describes what happens to an employee’s work or employment.
A restructuring can result in:
- Permanent job elimination
- Temporary layoffs
- Changes to duties
- Changes to reporting relationships
- Reduced compensation
- New or combined positions
If your employment ends permanently, the issue is usually termination and severance rather than a temporary layoff.
What If Your Job Still Exists Under a New Title?
If your employer says your position was eliminated but someone else is performing substantially the same work, that can raise questions about the true reason for the termination.
Look at:
- Whether your duties continue
- Whether another employee takes over your responsibilities
- Whether a new employee is hired shortly afterward
- Whether the job title changed but the work stayed the same
- Whether the employer gave different explanations at different times
This does not automatically make the termination illegal, but it can matter if the employer claims the role disappeared for a specific reason.
Can Your Employer Make You Reapply for Your Job During Restructuring?
An employer can restructure positions and ask employees to apply for newly created roles.
But if your existing job is eliminated and you are not selected for the new role, your employer may still owe you severance.
Do not assume that refusing to apply for a substantially different job means you have resigned.
⚠️ Asked to reapply for a lower-paid or substantially different role?
Get advice before refusing, accepting or resigning. Your decision can affect your severance rights.
What If Restructuring Changes Your Pay or Job?
A major unilateral change to your employment can amount to constructive dismissal.
That can include significant changes to:
- Salary
- Bonus or commissions
- Hours
- Responsibilities
- Authority
- Work location
- Status or seniority
If the company gives you a new role after restructuring, compare the full terms before accepting it.
Read our guide to constructive dismissal.
Can Restructuring Be Used to Hide a Wrongful Termination?
An employer can terminate a non-unionized employee without cause as part of a restructuring if it provides the compensation the employee is owed.
What an employer can’t do is use restructuring to hide discrimination, retaliation or another unlawful reason for selecting an employee for termination.
Concerns can arise where the termination follows:
- A medical leave
- A disability accommodation request
- Pregnancy or parental leave
- A workplace complaint
- A request for legally protected rights
The employer’s explanation and timing should be reviewed in context.
Are You Owed Severance If Your Job Is Eliminated?
Yes, you can be entitled to severance when your position is eliminated because of restructuring.
The company does not get to reduce your severance simply because the termination was caused by restructuring, cost-cutting or a business slowdown.
For employees entitled to common-law notice, severance can be as much as 24 months’ pay and depends on factors such as:
- Age
- Length of service
- Position
- Compensation
- Availability of comparable work
- Employment contract
Compensation can include more than base salary. Bonuses, commissions and benefits can also form part of the package.
Read our guide to severance pay in Canada or use the Severance Pay Calculator.
💡 Long-service and senior employees can be owed substantial severance after restructuring.
Do not assume the amount in the termination letter is the maximum available.
What If Your Job Is Eliminated While You Are on Medical Leave?
Your employer can eliminate a position while you are on medical leave if the decision is genuinely unrelated to your disability or leave.
But your medical condition or absence can’t be the reason you were selected for termination.
If the timing raises concerns, review:
- When the restructuring decision was made
- Whether other jobs were eliminated
- Whether your role still exists
- Whether your employer raised concerns about your absence
Read our guide to being fired while on medical leave.
Job Elimination and Restructuring: FAQs
Can a company eliminate your position?
Yes. A company can eliminate a role as part of restructuring, but it may still owe the employee severance.
Does restructuring mean layoffs?
It can. Restructuring can involve layoffs, permanent terminations, role changes or combining positions.
Is job elimination the same as being fired?
If your employment ends because your position is eliminated, you have still been terminated even if the company avoids using the word “fired.”
Can your employer eliminate your position and hire someone else?
An employer can reorganize work, but replacing you with someone doing essentially the same job can raise questions about the employer’s explanation for the termination.
Do you get severance if your job is eliminated?
Yes, you can. Restructuring does not remove your right to termination notice or severance.
Can you be asked to take a lower position instead of being terminated?
Yes, but a substantial reduction in pay, status or responsibilities can raise constructive dismissal issues. Get advice before accepting or rejecting the change.
Can your employer make you reapply for your position?
An employer can create a new structure and ask employees to apply for available roles. If your existing employment ends, severance rights can still apply.
Can older employees be selected for restructuring?
An employer can’t select an employee for termination because of age. Older employees can also be entitled to significant severance depending on their circumstances.
Should you sign a restructuring severance package?
Not before having it reviewed. The initial package may be less than your full entitlement.
What if your employer gives you a deadline?
An employer’s deadline to accept a severance offer is different from the legal deadline for pursuing your severance rights. Get advice promptly, but do not rush into signing a release.
What if you’re unionized?
Your collective agreement governs restructuring, layoffs and termination rights. Contact your union about the change and any grievance deadlines. Samfiru Tumarkin LLP’s employment law team does not assist with unionized workplace disputes.
Was Your Job Eliminated Due to Restructuring?
A company can restructure and eliminate positions, but that does not mean you have to accept the first severance offer you receive.
If your job was eliminated, your responsibilities were moved to someone else or you were offered a lower-paid role, get advice before signing or resigning.
The employment lawyers at Samfiru Tumarkin LLP help non-unionized employees in Ontario, Alberta and British Columbia understand their restructuring, termination and severance rights.
Before you sign, always check first.
➡️ Get Legal Advice or call 1-855-821-5900.