CRA Layoffs: Hundreds of temporary workers to be axed in December

What’s going on at the CRA?

The Canada Revenue Agency (CRA) is planning to eliminate approximately 580 temporary workers, most of them debt collectors, next month.

A CRA representative told news outlets, including the CBC, that the organization is prioritizing resources for tax filing and reducing pandemic-era staffing levels.

The update comes after the Treasury Board instructed departments to reduce spending to meet budget targets of $15 billion in savings over four years.

At the end of March, the CRA reportedly employed more than 59,000 people.

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• Employment lawyer on CERB Court of Appeal decision

Union reaction

Marc Brière, national president of the Union of Taxation Employees, told the CBC that laying off debt collectors doesn’t make sense because these workers bring in much more than they cost.

Brière added that the union was told no more layoffs will come this year, and permanent jobs at the agency won’t be affected in the foreseeable future.

No shortage of major layoffs

As 2024 draws to a close, the CRA isn’t the only major employer trimming their headcount.

Other big names, including AMD, Boeing, Audi, Volkswagen, Visa, Nokia, Deloitte, ApplyBoard, Qualcomm, and IBM, have also pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Amazon Layoffs: Nearly 14,000 managers could be axed to cut costs
• CareerBuilder + Monster lays off 15% of staff: Report
• Where are layoffs happening in Canada?

While it remains unclear if the CRA has terminated both unionized and non-unionized workers, it’s important for non-unionized individuals to understand their rights when they are fired or let go.

Your rights

Non-unionized CRA employees are entitled to full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working full-time, part-time, or hourly in Ontario, Alberta, and British Columbia. In some cases, this can also apply to independent contractors.

Key Severance Facts:

• Severance can be as much as 24 months’ pay—depending on age, length of service, position at the company, and other factors.
• In addition to salary, severance may cover bonuses, commissions, and other compensation.
• You have up to two years from the date of your termination to pursue full severance pay—regardless of any employer-imposed deadlines, which aren’t legally enforceable.

WATCH: Employment lawyer Lior Samfiru explains severance rights if you’ve been downsized on an episode of the Employment Law Show.

Before you sign a severance package

Use our firm’s free Severance Pay Calculator to confirm that the offer you received from your employer is fair.

This interactive tool has helped millions of Canadians determine their severance entitlements.

In the event that your employer’s offer falls short of what our calculator says you’re owed, it’s very likely you’ve been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

If you’ve already accepted a severance offer, don’t panic. Connect with a member of our team as soon as possible.

LEARN MORE
• Severance pay for federally regulated employees
• Rights to severance for provincially regulated staff
• Are severance packages different during mass layoffs?
• Severance entitlements in a recession

Lost your job? Contact us

If you’ve been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you’re a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

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.