Polyethics Industries Layoffs: 118 Workers Temporarily Laid Off In Orillia

Polyethics Industries temporarily laid off 118 employees in Orillia, Ontario, in October 2026, amid financial pressures linked to U.S. tariffs, lost business and financing challenges. The layoffs were reported on October 17, and the company says bringing affected workers back is a priority.

EcoPoly/Polyethics, a Canadian plastics manufacturer, continues to employ more than 200 people at its Orillia operations. However, no confirmed return-to-work date has been announced for the laid-off employees.

In Ontario, most non-unionized employees can’t simply be placed on a temporary layoff without their agreement. If Polyethics doesn’t have the legal right to lay off a worker, that employee can treat the layoff as a termination and pursue severance immediately. They don’t have to wait months for a recall.

On This Page:

• 1. What Happened In Orillia?
• 2. Ohio Expansion
• 3. Temporary Layoff Rights
• 4. Severance Pay
• 5. What Employees Should Do
• 6. Common Questions

Why Did Polyethics Lay Off 118 Workers In Orillia?

According to an October 17 report by OrilliaMatters, Polyethics temporarily laid off 118 employees because of difficult economic conditions affecting its Canadian operations.

The company identified several challenges:

• US tariffs and trade uncertainty affecting customer demand
• Lost business that takes time to replace with new orders
• Difficulty securing financing and government support during the transition

Polyethics says it remains committed to manufacturing in Canada and wants to recall affected workers. More than 200 employees remain at its Orillia facilities.

No confirmed recall date has been announced.

Is Polyethics Expanding In Ohio While Laying Off Ontario Workers?

Yes. On October 6, 2026, Polyethics announced plans to invest more than US$41 million in a manufacturing facility in Antwerp, Ohio.

According to JobsOhio, the project is expected to create 250 jobs over several years and bring production closer to American customers.

The announcement came shortly before the Orillia layoffs. However, there is no confirmation that the 118 Canadian positions are being transferred to Ohio or permanently eliminated.

Polyethics has said its priority is to bring the laid-off employees back to work.

Can Polyethics Legally Put Employees On Temporary Layoff?

In most cases, an Ontario employer can’t temporarily lay off a non-unionized employee unless the employment contract allows it. A shortage of work, financial difficulties or tariffs don’t automatically give an employer the right to stop paying its workers.

If Polyethics doesn’t have that right, the layoff can amount to constructive dismissal. In other words, the employee can treat the layoff as a termination and pursue full severance pay.

It doesn’t matter that Polyethics intends to recall employees. A promise of future work doesn’t automatically make an unauthorized layoff legal.

What If My Contract Allows Temporary Layoffs?

An employer may have the right to temporarily lay off employees if their contract permits it, they’ve previously agreed to that arrangement or layoffs are an established part of their employment.

Ontario’s Employment Standards Act also sets limits on how long a temporary layoff can last. However, complying with those limits doesn’t automatically make a layoff legal under an employee’s contract.

Read our Ontario temporary layoff guide for more information.

How Much Severance Could Polyethics Employees Receive?

Polyethics employees who have been placed on an unauthorized temporary layoff can be entitled to severance of up to 24 months’ pay. They don’t have to wait for the company to permanently eliminate their jobs.

Your severance isn’t necessarily limited to the minimum amount required by Ontario’s Employment Standards Act. The full amount depends on your age, length of service, position, ability to find similar work and employment contract.

Severance pay in Ontario can include more than regular wages. Benefits, bonuses and other compensation may also need to be considered.

What Should Laid-Off Polyethics Employees Do?

Don’t assume you have to accept the layoff and wait to be called back. If Polyethics wasn’t entitled to temporarily lay you off, you may already have the right to pursue severance. Acting promptly matters because accepting the arrangement or waiting too long to challenge it can affect your rights.

1. Keep your layoff notice. Save any written explanation, recall information and communication from the company.
2. Review your employment contract. Don’t assume the company has the right to temporarily suspend your work.
3. Don’t agree to the layoff without advice. Don’t sign new terms, resign or tell the company you’re accepting the arrangement before understanding your severance rights.
4. Speak with an employment lawyer. Find out whether you can pursue severance now rather than wait for an uncertain recall.

The Ontario employment lawyers at Samfiru Tumarkin LLP help non-unionized employees across the province understand their rights and pursue compensation after a layoff or termination.

Before you sign, always check first.

Polyethics Layoffs: Common Questions

Are the 118 Polyethics layoffs permanent?

Polyethics describes the layoffs as temporary and says it wants to recall affected employees. No return date has been confirmed in the reporting.

Do I have to wait 13 weeks before asking for severance?

No. If Polyethics doesn’t have the right to temporarily lay you off, you may be able to pursue severance immediately. Ontario’s employment standards time limits don’t automatically give employers permission to impose temporary layoffs.

What if Polyethics promises to bring me back?

A promise to recall employees doesn’t eliminate their severance rights. If the layoff wasn’t legally permitted, you may be entitled to compensation even if Polyethics plans to restart your work. Speak with an employment lawyer before accepting or rejecting a recall offer.

What if I’m unionized?

Contact your union about your layoff, recall rights and any grievance deadlines. Unionized workplace disputes must be handled through the collective agreement and grievance process.

Sources

• OrilliaMatters: Polyethics temporarily lays off 118 Orillia employees, October 17, 2026
• JobsOhio: Polyethics announces Ohio manufacturing expansion, October 6, 2026
• Ontario Ministry of Labour: Termination of employment and temporary layoff rules

Disclaimer: This article summarizes publicly reported information and provides general employment law information, not legal advice. It does not suggest wrongdoing by Polyethics Industries or determine whether any individual layoff is lawful. Employment rights depend on the circumstances, contract and applicable law.