LifeLabs Layoffs 2026: What’s Happening & Severance Rights in Canada

LifeLabs is no longer planning to completely exit Sudbury, Ont. — cutting its 40-person local workforce in half. (CTV News)

The update comes just months after the company announced its intent to shutter the lab on May 17, 2026 and shift operations to Toronto.

“[We’re] committed to supporting affected employees with care, respect, and clear communication,” LifeLabs said in a statement.

“[We’ll] also be hiring for roles within the dedicated Sudbury laboratory, with current employees prioritized as candidates, providing opportunities to remain part of LifeLabs in the region.”

This page explains:

• What’s happening with layoffs at LifeLabs
• Whether a layoff at LifeLabs is permanent
• How much severance Canadian employees at LifeLabs may be owed
• What to do before signing a severance offer

Is a Layoff at LifeLabs Temporary or Permanent?

For non-unionized employees at LifeLabs, a layoff is almost always treated as a termination without cause, even if the following language is used:

• “Restructuring”
• “Reorganization”
• “Transformation”
• “Temporary layoff”

Unless your employment contract explicitly allows for LifeLabs to temporarily lay you off, the company can’t place you on indefinite layoff without terminating your employment — meaning they must provide full severance pay.

Severance Pay for LifeLabs Staff

In Canada, non-unionized employees, including those at LifeLabs, are often owed far more severance pay than what’s outlined in their initial offer.

Severance is based on common law entitlements, not just minimum standards. Factors include:

• Age
• Length of service
• Position and seniority
• Availability of comparable jobs

In many cases, LifeLabs employees in Canada can be owed up to 24 months of compensation.

Severance may include:

• Base salary
• Continued benefits
• Bonus and incentive compensation
• Stock, equity, or RRSP contributions (where applicable)
• Vacation pay
• Other earned compensation

First offers often:

• Cover only minimum entitlements
• Exclude bonuses or incentives
• Impose short signing deadlines
• Undervalue long-service or senior employees

Severance Offers: Common Problems

Canadian employees affected by layoffs frequently report issues such as:

• Severance offers far below legal entitlements
• Missing or unclear compensation breakdowns
• Benefits cut off too early
• Bonuses excluded without justification
• “Temporary layoff” language used improperly
• Pressure to sign within 24–48 hours

Wrongful Dismissal and LifeLabs Layoffs

A wrongful dismissal occurs when employers, including LifeLabs, fail to provide full severance required under common law.

You may have a claim if:

• Your severance offer is too low
• A termination clause isn’t enforceable
• You were pressured to accept your severance offer on the spot
• Bonuses or benefits were excluded from your severance package
• You were terminated while on medical, parental, or disability leave
• LifeLabs labelled your termination a “temporary layoff” without contractual authority

Large-scale layoffs at LifeLabs don’t reduce their legal obligations in Canada.

Laid Off at LifeLabs? Next Steps

If you’ve been laid off at LifeLabs:

1. Don’t sign your severance offer immediately
2. Gather your employment contract, bonus plans, and benefits information
3. Use the Severance Pay Calculator to double-check your entitlements
4. Keep records of your role, compensation, and length of service
5. Speak with an employment lawyer before agreeing to anything

LifeLabs Layoffs: Frequently Asked Questions

How much severance can employees at LifeLabs receive?

Up to 24 months — depending on age, service, and position.

Are LifeLabs layoffs permanent?

For non-unionized employees, yes. A layoff is typically a termination.

Does LifeLabs have to include bonuses in severance?

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

Can LifeLabs terminate employees on leave?

This can raise serious wrongful dismissal and human rights issues.

Can employment lawyers represent unionized staff at LifeLabs?

No. Unionized employees at LifeLabs must go through their union.

Lost Your Job? Get Help Now

If LifeLabs has laid you off, or offered a severance/buyout package, don’t do anything before seeking legal advice.

Samfiru Tumarkin LLP, one of Canada’s most reviewed employment law firms, has helped more than 50,000 Canadians secure the compensation they’re legally entitled to.

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