Microsoft Layoffs: Your Rights and Severance Pay Explained

Facing a layoff at Microsoft? Know your options

What is Microsoft Canada?

Microsoft Canada is a wholly-owned subsidiary of Microsoft Corporation (Microsoft), which is an American multinational technology company that produces personal computers, software, and a variety of consumer electronics.

Founded in 1985, the Canadian division of the tech giant employs nearly 5,000 full-time workers across the country.

Headquartered in Mississauga, Ontario, Microsoft has regional offices in several major cities, including Toronto, Montreal, Quebec City, Calgary, Edmonton, and Vancouver.

According to the company’s website, it has provided in-demand technology skilling to more than one million Canadians since 2020.

Rights for non-unionized employees

The tech industry comes with unique dynamics that can affect staff during a layoff.

For instance, individuals often work under specific employment contracts, bonus structures, or non-compete clauses that may impact their severance entitlements and future job prospects.

If you’ve been let go from Microsoft, it’s critical to review your employment agreement carefully.

We’re here to support your next steps

Losing your job is more than just a financial setback — it’s a major change that can impact your career trajectory and personal confidence.

This guide is here to provide clarity and empower you during this transition.

We’ll outline your severance rights, explain what non-unionized employees are entitled to, and offer actionable steps to help you move forward and protect your future.

WATCH: Key things non-unionized employees should know after a layoff, with employment lawyer Lior Samfiru on the Employment Law Show.

Laid off at Microsoft? 5 steps to take

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 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 Severance Pay Calculator. This quick step helps you understand your entitlements and plan your next move.

4️⃣ Get legal advice: Contact an 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 important in severance claims.

Layoff FAQs

Do employment contracts affect severance?

Yes, an employment contract can affect your severance entitlements if it includes enforceable termination clauses.

However, many of these clauses may be invalid for several reasons.

Are temporary layoffs legal?

Temporary layoffs for non-unionized employees are generally not permitted unless specifically allowed by an employment contract.

Otherwise, a layoff may be treated as a termination through a constructive dismissal claim.

Am I entitled to severance as a contractor?

If your work closely resembles that of an employee — such as reporting to a manager, using company equipment, or working regular hours — you may qualify for severance even if classified as a contractor.

Should I negotiate my severance package?

To ensure that you receive the amount of compensation that you’re entitled to, let our lawyers in Ontario, Alberta, and British Columbia negotiate on your behalf.

Are severance deadlines legal?

Your employer’s deadline to accept a severance offer isn’t legally binding.

You have up to two years from your termination date to file a claim for severance, so it’s important to review your offer carefully and seek legal advice before signing anything.

Can unionized employees get severance?

Unionized employees are governed by collective agreements, which outline severance and other rights.

By law, only your union can represent you in these matters — even if you feel your union isn’t providing adequate assistance. Unfortunately, our firm can’t assist represent employees with severance or wrongful dismissal issues.

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 layoff effectively.

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

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

Get help today!

Contact Samfiru Tumarkin LLP to get the compensation you’re entitled to.

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

Key resources for Microsoft employees

• Severance for provincially regulated employees
• Severance pay by company
• Severance packages in mass layoffs
• Termination for cause: Why severance may still be owed
• Wrongful dismissal: What it is and how to respond
• Employment rights when a business closes

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.