Employee rights during a trade war: Lior Samfiru on Newstalk 580 CFRA

Interview Summary

The news of incoming U.S. tariffs has led to noticeable worry about job protection from many Canadians. Despite perpetual delays, many employees and employers are unsure what the coming months will mean for business. Some employers, hoping to avoid financial hardship, have implemented layoffs. What can employees do to protect their rights during difficult economic times?

Lior Samfiru, an Ontario employment lawyer and Co-founding Partner at Samfiru Tumarkin LLP joined Newstalk 580 CFRA’s Bill Carroll to discuss employee rights and options for employers amidst the threat of tariffs.

Interview Notes

• Employment law protections: Samfiru explained that despite the difficult and somewhat unique circumstances Canadians are trying to navigate, employment laws have not changed. “Canada has some of the best employment rights in the world,” said Samfiru. “Employers are prevented from letting people go with minimal compensation or placing people on indefinite temporary layoffs.
• Factors that influence severance pay: “While it is easy to think due to the employer struggling they would get a break regarding severance obligations, legally, this is not the case,” Samfiru noted. “Employers may owe additional compensation if an employee will now take more time to find a job,” Samfiru mentioned that these circumstances are not dissimilar to the economic difficulties many faced during the COVID-19 pandemic.
• Any protections for employers: “All courts have recognized that we have to protect employees as there is an inherent imbalance of power between employers and employees,” said Samfiru. Samfiru emphasized the importance of employers drafting proper employment contracts. “Employers do have the ability to pre-plan for issues like this to limit their financial liabilities.”
• Reaction from employers: Samfiru noted that during the pandemic employers often tried to pay less than what they were obligated to in severance packages. “Employees were owed much more than what they were usually owed, and employers offered less than they typically did.” Employment lawyers had to fight harder for employees.
• Potential for bankruptcy: Employment lawyers need to remember that it is impossible to force employers to pay severance if they are no longer able to. “Bankruptcy is a consideration and something we have to factor in as it does no one any good if an employer goes out of business,” said Samfiru.
• Communicating with employers: “It is a good idea for employers and employees to talk about how they can try and weather the storm,” Samfiru commented. “It is a good idea to plan rather than being reactionary and leave employees with no choice but to pursue their full entitlements.”

Related Resources

For further insights and discussions related to employee rights and the gig economy, explore the following resources:

• U.S. proceeds with reciprocal tariffs
• Canadian government announces aid program amid trade war