‘Loud Layoffs’: What employees need to know

What is a loud layoff?

A loud layoff occurs when an employer’s plan to scale back its staffing levels is widely publicized.

Job cuts by a company are considered “loud” if they:

• Garner a significant amount of coverage from major news outlets
• Trend on multiple social media platforms (i.e. Facebook, LinkedIn, etc.)

Economists and business experts told CNBC that it’s common for “household name companies” to experience loud layoffs because they traditionally receive more media attention than smaller and lesser-known employers.

SEE ALSO
• ‘Quiet Layoffs’: What employees need to know
• What Canadians need to know about ‘quiet firing’
• ‘Loud quitting’ in Canada: Employee rights

Loud layoffs in 2023

A variety of employers have experienced loud layoffs this year.

Job cuts by big names, including Cruise, Etsy, Hasbro, Spotify, TD Bank, Broadcom, Amazon, AbCellera, Canadian Tire, PwC, Maersk, and Nokia, have garnered a significant amount of media coverage.

SEE ALSO
• Firm launches $130M class action against Shopify for breach of contract
• Panera laying off 17% of corporate staff ahead of IPO
• Where are layoffs happening in Canada?

Severance pay in Canada

In Canada, non-unionized employees are owed full severance pay when they are fired without cause or let go.

This includes individuals working full-time, part-time, and hourly in Ontario, Alberta, or B.C.

Severance can be as much as 24 months’ pay, depending on a variety of factors.

WATCH: Employment lawyer Lior Samfiru explains everything you need to know about severance packages on an episode of the Employment Law Show.

Even if you are terminated for cause, it’s very likely that you are still entitled to full severance pay because non-unionized employees often don’t meet the conditions necessary for this type of dismissal.

Regardless of a company’s grasp on employment law, they are legally required to provide proper compensation following a termination.

This concept applies during challenging economic conditions, downsizing, the closure of a business, or major public health events such as the COVID-19 pandemic.

LEARN MORE
• Severance for provincially regulated employees
• Rights to severance for federally regulated workers
• Severance packages during mass layoffs

My boss gave me working notice before laying me off, does that affect my severance?

The short answer is yes. If a non-unionized employee in Canada receives working notice, it will affect how much severance pay they are owed when the employment relationship ends.

• Example: You are entitled to 16 months of severance pay if you are fired or let go immediately. One day, your employer gives you eight months of working notice. When the working notice period ends, the company will owe you eight months of severance instead of 16 months.

Similar to calculating severance pay, the length of the working notice period is determined using various factors, including position, salary, how long you have worked for the company, and your ability to find similar employment.

If you believe that your employer didn’t provide you with the correct amount of working notice or severance, contact an experienced employment lawyer at Samfiru Tumarkin LLP.

We can determine if you have been wrongfully dismissed and help you secure the compensation you are owed.

SEE ALSO
• Severance Pay Calculator: Determine your entitlements
• Employment Law Show: Things to never do before seeking legal counsel
• Employment Law Show: Situations that trigger legal disputes

My boss is pressuring me to sign my severance offer immediately, what should I do?

It’s not uncommon for employers in Canada to pressure non-unionized workers to immediately accept severance offers that provide them with far less compensation than they deserve.

If you receive an offer from your boss, don’t sign anything before contacting our firm.

The company can’t legally force you to accept it before leaving a termination meeting or even a few days after it was provided to you.

In some cases, employers try to add:

• A termination clause that limits the amount of severance pay you can receive
• Non-compete clauses that prevent you from being able to pursue employment elsewhere in your industry

As long as you didn’t accept the offer and return it to your boss, you have two years from the date of your dismissal to pursue full severance pay.

SEE ALSO
• I already accepted a severance package, what should I do?
• ’60 days or more’: Is it an enforceable termination clause?
• Employment Law Show: 5 facts about employment contracts

My employer won’t provide me with any severance after I declined their offer, can they do that?

The short answer is no. In Canada, employers can’t revoke severance offers simply because an individual declined it or attempted to negotiate more compensation.

If your boss refuses to provide you any severance because you turned down their initial offer, it’s very likely that you have grounds for a wrongful dismissal claim.

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

Lost your job? Speak with an employment lawyer

If you are fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have helped tens of thousands of non-unionized individuals resolve their workplace issues.

We can review your situation, enforce your rights, and ensure that you receive the compensation you are owed.