How Trump’s tariffs could affect Canadians: 3 key employee rights

Did the U.S. hit Canada with tariffs?

Yes. Following a brief trade truce, the U.S. implemented a 25 per cent tariff on all Canadian goods, with a lower 10 per cent levy on energy, on March 4.

In response to the sweeping duties, Prime Minister Justin Trudeau said counter-tariffs will remain in place until President Donald Trump withdraws the trade action and “not a moment sooner.”

SEE ALSO
• Trump announces ‘steel and aluminum tariffs 2.0’, Canada affected
• ‘It’s fair to all’: Trump to slap trade partners with reciprocal tariffs
• Doug Ford warns Trump’s 25% tariff could cost Ontario ‘500,000 jobs’
• Trump’s 25% tariff could affect 29,000 agricultural jobs: OGVG

Lior Samfiru weighs in on Trump’s tariffs

“Despite the extreme nature of these tariffs, employment laws and rights in Canada don’t go out the window,” Lior Samfiru, employment lawyer and co-founding partner of Samfiru Tumarkin LLP, said.

“Even in a situation where a company has to make personnel moves because of the trade action, it doesn’t give employers new rights vis-à-vis their staff. There’s still the obligation to provide full severance — up to 24 months of pay — and there’s still a prohibition on temporary layoffs as well as significant changes to the terms of an individual’s employment.”

Samfiru and his team will be monitoring the relief measures introduced by provinces and the federal government, including the proposed adjustment to the Employment Insurance (EI) program.

With a trade war upon us, here are three key rights that non-unionized employees in Canada need to be aware of.

1. Can I be temporarily laid off?

Temporary layoffs are considered illegal in Canada — unless you agreed to the layoff or it’s addressed in your employment contract.

WATCH: Five facts about temporary layoffs on an episode of the Employment Law Show.

If you’re temporarily laid off due to the tariffs, or for any reason, contact an experienced employment lawyer at Samfiru Tumarkin LLP.

You might be able to pursue full severance pay through a constructive dismissal claim.

SEE ALSO
• How to calculate severance pay in Canada
• Severance packages during a recession
• Employment Law Show: Things your employer can’t legally do

2. Can my employer make major changes to my job?

A trade war doesn’t give employers in Canada the right to make significant adjustments to the terms of an individual’s employment without their consent.

Major modifications, such as a demotion, pay cut, or workload increase, are illegal in the country.

WATCH: Everything Canadians need to know about changes to their job on an episode of the Employment Law Show.

Learn more about your rights if major changes are made to your job in Ontario, Alberta, and British Columbia.

3. Can my employer fire me?

Employers in Canada can fire non-unionized workers for any reason, as long as they’re provided full severance pay and the reasons for their dismissal aren’t discriminatory. This is known as a termination without cause.

Terminated due to Trump’s tariffs? 5 things to do

1️⃣ Don’t sign anything immediately: Take your time to review all termination documents carefully. Speak with a lawyer before signing anything to ensure you’re fully informed and protected.

2️⃣ Document everything: Save copies of employment contracts, termination letters, severance offers, and correspondence with your employer for future reference.

3️⃣ Use our Severance Pay Calculator: Estimate what you’re owed with our firm’s free Severance Pay Calculator. This will help you understand your entitlements and plan your next move.

4️⃣ Get legal advice: Contact an experienced employment lawyer at Samfiru Tumarkin LLP to ensure your severance package reflects your full rights.

5️⃣ Start exploring new opportunities: Update your resume and begin searching for new roles. Proactively seeking work not only boosts your career, but also demonstrates your effort to find a new job, which is crucial in severance claims.

Why Samfiru Tumarkin LLP?

At Samfiru Tumarkin LLP, we’ve helped over 50,000 clients secure fair severance packages — recovering millions of dollars for non-unionized employees across Canada.

With extensive experience representing workers in roles at small businesses and large organizations across various industries, our team provides the expertise you need to navigate your termination effectively.

SEE ALSO
• Should I negotiate my own severance package in Ontario?
• What Albertans need to know about negotiating severance
• Negotiating severance in B.C.: What employees need to know

WATCH: Understand the difference a legal professional can make in certain situations on an episode of the Employment Law Show.

We specialize in assisting non-unionized employees in Ontario, Alberta, and British Columbia — ensuring rights are fully protected.

In addition to employment law, our firm handles disability claims and personal injury cases.

Call 1-855-821-5900 today or request a consultation online.

Disclaimer: The materials provided in this article are for general informational purposes only and DO NOT constitute legal advice. For advice specific to your situation, please consult a legal representative at Samfiru Tumarkin LLP.