New Gold Layoffs: What’s Happening, Who’s Affected & Severance Rights in Canada

New Gold is eliminating approximately 85 jobs at its New Afton mine in Kamloops, British Columbia. (Castanet Kamloops)

“This reduction is part of the project cycle at the New Afton mine and is unrelated to Coeur Mining’s planned [US$7-billion] acquisition,” the Toronto-based gold miner said in a news release.

“Production growth at New Afton is expected to continue to increase year-over-year for the next 3 years with C-Zone in production.”

The New Afton mine opened in 2012 and is currently set to “expire” in 2031.

This page explains:

• What’s happening with New Gold layoffs
• Who’s most affected
• Whether a layoff at New Gold is permanent
• How much severance New Gold employees in Canada may be owed
• What to do before signing a severance offer

New Gold Layoffs: A Timeline of Recent Job Cuts

The latest workforce reduction at the New Afton mine comes just years after New Gold eliminated 28 roles as part of a “reorganization” in February 2018.

Who’s Affected by the Latest Round of Layoffs?

While New Gold hasn’t disclosed the specific roles being cut at the New Afton mine, 1-on-1 meetings are scheduled to take place.

According to reports, around 500 people currently work at the mine.

New Gold is primarily a provincially regulated employer — meaning most non-unionized employees are governed provincial employment standards, not the Canada Labour Code.

Is a New Gold Layoff Temporary or Permanent?

For non-unionized employees at New Gold, 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 New Gold 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 New Gold Staff

In Canada, non-unionized employees, including those at New Gold, 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, New Gold 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 New Gold Layoffs

A wrongful dismissal occurs when major employers, including New Gold, 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
• New Gold labelled your termination a “temporary layoff” without contractual authority

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

Laid Off at New Gold? Next Steps

If you’ve been laid off at New Gold:

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

New Gold Layoffs: Frequently Asked Questions

How much severance can New Gold employees receive?

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

Are New Gold layoffs permanent?

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

Does New Gold have to include bonuses in severance?

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

Can New Gold terminate employees on leave?

This can raise serious wrongful dismissal and human rights issues.

Can employment lawyers represent unionized New Gold staff?

No. Unionized employees at New Gold must go through their union.

Lost Your Job at New Gold? Get Help Now

If New Gold 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.