Algoma University Layoffs 2026: News, Restructuring & Severance Pay

Algoma University is planning to eliminate 50 to 75 roles in 2026 as the school prepares to navigate a nearly $16.5-million deficit in the coming year.

“One [option for staff] is an exit plan, so a voluntary exit of the kind that you see at other universities,” Sheila Embleton, interim president of the Sault Ste. Marie-based post-secondary institution, told CTV News.

“The other is a voluntary reduction in the work week. So instead of working 5 days a week to only work 3 days a week. This enables people to maintain their status with respect to things like benefits, but, of course, there’s a commensurate reduction in salary.”

Affected employees have until May 8 to make their decision. If you’re a non-unionized worker or manager at Algoma University, which is a provincially regulated employer, understanding these developments is the first step in ensuring your legal rights are protected during this period of restructuring.

Your Rights as a Non-Unionized Employee

Whether your departure is labelled a “layoff,” “restructuring,” or a “voluntary package,” your legal rights are governed by Canadian common law.

How Severance Pay Works

For non-unionized staff and managers at Algoma University, severance pay in Ontario isn’t determined by a single internal policy.

Instead, it’s based on the unique circumstances of your situation:

• The 24-Month rule: Depending on your age, length of service, and the nature of your role, you may be entitled to up to 24 months of severance pay.
• Managerial complexity: For managers, severance must often account for bonuses, RSUs, and stock options.
• Provincially regulated status: Because Algoma University is a provincially regulated employer, specific rules under Ontario’s Employment Standards Act (ESA) apply alongside common law standards.

Defining Wrongful Dismissal in Ontario

A “wrongful dismissal” is a specific legal term. It occurs whenever an employer in Ontario terminates a non-unionized worker without “just cause” but fails to provide the proper amount of severance pay.

This isn’t a reflection of the company’s intent, but rather a calculation of whether the package meets the high standards set by Canadian courts.

If an employment contract’s termination clause is unenforceable, or if a “temporary layoff” is implemented without a prior written agreement, an employee may have a claim for full severance.

Recommended Steps for Affected Algoma University Staff

If you’ve been notified of job loss or offered a “voluntary departure” package at Algoma University:

1. Don’t sign anything immediately: You’re legally entitled to a reasonable period to review any offer. Signing a release prematurely can waive your right to pursue full compensation.
2. Use the Severance Pay Calculator: Get an anonymous, instant estimate of your entitlements.
3. Check your compensation: Ensure your offer includes all variable pay, including bonuses and benefits.
4. Seek legal advice: An experienced employment lawyer can ensure that you receive fair compensation.

Algoma University Layoffs: Frequently Asked Questions

Are layoffs at Algoma University permanent?

For non-unionized employees, a layoff is typically treated as a permanent termination of employment requiring full severance.

Can a manager at Algoma University negotiate a better deal?

Yes. Initial offers from large employers often focus on minimum standards rather than full common law entitlements.

Does Algoma University have to include bonuses in severance?

Often yes — especially if bonuses were a regular part of compensation.

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Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Ontario. 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.