Skills Development Fund in Ontario: What Laid-Off Workers Should Know

If you’ve lost your job or are considering a career change, you may be looking into Ontario’s Skills Development Fund (SDF). This government initiative offers support for training and reskilling programs across the province.

Here’s what you need to know—and how it may connect to your rights as a non-unionized employee in Ontario

What is the Skills Development Fund?

The Skills Development Fund (SDF) provides financial support to organizations that deliver training programs or upgrade training facilities. It aims to help individuals build skills for in-demand industries, such as:

• Skilled trades and construction
• Health care
• Advanced manufacturing
• Technology

The program has two main streams:

• Training Stream: Funds projects that help people enter or stay in the workforce.
• Capital Stream: Supports the building or improvement of training centres.

Organizations eligible to apply include employers, non-profits, trade unions, municipalities, hospitals, and Indigenous organizations. Educational institutions can apply as co-applicants.

Recent Developments: Expanded Funding in 2025

Ontario recently announced an additional $955 million in Skills Development Fund investments over the next three years. The goal is to expand access to training opportunities and support sectors facing economic pressures, including those impacted by recent U.S. tariffs.

This brings the total SDF commitment to $2.5 billion, supporting both new training programs and infrastructure upgrades across Ontario.

Why People Explore SDF Programs

Many individuals turn to programs like the Skills Development Fund after:

• Being laid off from a long-time job
• Facing reduced hours or job insecurity
• Seeking a new career path in a growing industry

In Ontario, retraining after a layoff is often part of a broader plan to re-enter the workforce, especially for those affected by economic shifts or downsizing. The SDF supports this effort by funding job training after layoff, career retraining, and skills development programs that can open doors to high-demand sectors like construction, health care, and tech.

If you’re exploring second career options in Ontario or looking for government-funded retraining programs, the SDF may help – but it’s just one part of the bigger picture.

Before diving into a training program, it’s important to understand your employment rights – especially your entitlement to severance pay.

Were You Recently Let Go? You May Be Owed Severance Pay

If you’re a non-unionized employee in Ontario who lost your job without cause, you may be legally entitled to significant severance pay – even if the layoff was due to economic challenges or restructuring.

Here’s what many workers don’t realize:

• Severance pay is not just what’s listed in your employment contract or the Employment Standards Act (ESA).
• Under common law, you could be owed up to 24 months’ pay, depending on factors like your age, position, length of service, and ability to find new work.
• You may still qualify even if your employer says you were let go “for cause.”

Before you accept a severance offer or sign anything, it’s strongly recommended to speak with an experienced employment lawyer at Samfiru Tumarkin LLP.

Common Questions About Severance

• How do I know how much severance I’m owed? Use the Severance Pay Calculator for a free estimate.
• What if I’ve already applied to a training program? You can still pursue severance. In fact, showing you’re trying to find new work (such as through retraining) can support your severance claim.
• What if I was let go with little or no warning? You have been wrongfully dismissed.

SDF Training Stream vs. Capital Stream: At a Glance

Frequently Asked Questions About the Skills Development Fund

Who Qualifies for the Skills Development Fund in Ontario?

Employers, trade unions, non-profit organizations, municipalities, Indigenous groups, and certain post-secondary institutions (as co-applicants) may apply.

The fund prioritizes projects that help underrepresented communities, including those with disabilities, Indigenous peoples, and individuals with justice system involvement.

What does the Skills Development Fund pay for?

The Training Stream covers costs related to job training programs, including instructor wages, participant supports, and materials. The Capital Stream funds facility construction, upgrades, and equipment to expand training capacity.

How do I apply for SDF Capital Stream funding?

Applications for the Capital Stream can be submitted through Ontario’s Transfer Payment Ontario (TPON) system. Be sure to review the most recent application guidelines for eligibility and requirements.

I was recently laid off. Can I access SDF programs and still get severance pay?

Yes. Participating in retraining does not disqualify you from receiving severance pay in Ontario. In fact, taking steps to re-enter the workforce can help support your legal claim. You may still be entitled to up to 24 months’ pay depending on your situation. Use our Severance Pay Calculator to learn more.

Does SDF funding apply to unionized workers?

Yes, but this blog focuses on non-unionized employees, who have different rights when it comes to severance and retraining support. If you’re unionized, speak with your union representative directly.