Employee layoffs due to tariff threat: Lior Samfiru with Law360 Canada

Interview Summary

Ongoing threats of tariffs from the U.S. have made many employers nervous and looking to mitigate financial loss. Due to this, layoffs and wage reductions have been imposed across various industries. Should employers be wary of making major changes without consenting with their staff? How should employees prepare for possible difficulties ahead?

Lior Samfiru, an Ontario employment lawyer and Co-founding Partner at Samfiru Tumarkin LLP joined Law360 Canada’s John Schofield to discuss the impact of impending tariffs on employees.

Interview Notes

• Abiding by employment laws: Lior cautioned employers from implementing changes due to external forces without considering the law. “It’s easy [for employers] to believe, well, because it’s this outside force because it’s not our fault, we may have more rights or more flexibility — we don’t have to abide by the same rules that we do otherwise,” he added. “Of course, that’s not the case.” Samfiru noted major changes can lead to constructive dismissal.
• Severance entitlements: Samfiru explained that employees are still entitled to severance pay if terminated despite the extenuating circumstances, and many offers his firm has seen have been inadequate. “If it’s expected to be more difficult for an employee to find new employment, they have additional entitlements,” he said. “For example, any severance that they get is going to be enhanced.”
• Employee and employer concerns: “We’ve been inundated with calls and emails and messages on social media asking what do we do? Is this legal?” said Samfiru. “We have been retained by a number of individuals who’ve been impacted. But we’ve also heard from employers directly saying how concerned they are and how they know that there’s a real scenario where they’re going to have to make massive changes to their workforce and they’re prepared for that.”

Related Resources

For further insights and discussions related to tariffs and employee rights explore the following resources:

• Trump to respond with reciprocal tariffs
• Terminated without cause