Employment Law

Bonanza Ledge Mine closure puts 85 employees on layoff

bonanza ledge mine, mine, gold mine, osisko development

Osisko Development is putting 85 employees on temporary layoff after closing the Bonanza Ledge mine in Wells, British Columbia.

The mining company shut down the location temporarily on June 15, 2022, after putting the mine into temporary care and maintenance in response to increasing operating and capital costs.

Osisko says is it helping affected employees with new opportunities, and that it hopes to reemploy some individuals when their Cariboo Gold project is approved.

Temporary layoffs are illegal

It is illegal for an employer to put an employee on a temporary layoff for any reason in Canada, including financial difficulties.

A company may be permitted to lay off a worker for a certain period of time in some cases, such as when an employment contract contains language allowing the layoff, or if the employee has previously given permission for a pause in work.

Because a layoff is a significant change to the terms of employment, an employee can view the layoff as a termination.

They can resign from their job and pursue severance through a constructive dismissal claim with help from an employment lawyer at Samfiru Tumarkin LLP.

Severance pay

Non-unionized employees who are fired from Osisko Development, or seek severance for a temporary layoff, are entitled to proper compensation. This includes individuals working full-time, part-time, and hourly in Ontario, Alberta, or B.C.

Severance can be as much as 24 month’s pay. Your compensation is calculated using a number of factors, including:

  • Age
  • Position
  • Length of service
  • Ability to find new work

• Severance packages in mass layoffs
• Severance pay for provincially regulated employees

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