Employment Law

Ontario breaking up Peel Region, cities to be independent by 2025

May 18, 2023

The Ontario government has begun the process of dissolving Peel Region, paving the way for Mississauga, Brampton, and Caledon to become independent cities by 2025.

During a news conference at Queen’s Park on May 18, Municipal Affairs Minister Steve Clark discussed the bill — dubbed the “Hazel McCallion Act.”

An important day at Queen’s Park as I introduced the Hazel McCallion Act – legislation that will give Mississauga, Brampton and Caledon the tools & autonomy they need to support growth & build homes in the years to come. https://t.co/VpOqljRw2E pic.twitter.com/cf5BWBSI4j

— Steve Clark (@SteveClarkPC) May 18, 2023

“This historic initiative by our government would help Mississauga, Brampton, and Caledon prepare for the significant growth that we expect in their populations in the coming years, particularly when it comes to homes,” Clark told reporters.

He added that if the proposed legislation is passed, he would “appoint a transition board to help [the] municipalities become single-tier on Jan. 1, 2025.”

The board is expected to provide advice on a wide range of matters, including:

Financial sustainability
Property tax arrangements
Labour relations issues
Separation of regional services (i.e. paramedics and recycling)

On the topic of regional services, Clark said there could be some services that the three cities share after the split.

What do the mayors think?

While Caledon Mayor Annette Groves is optimistic that everything will work out, Mississauga Mayor Bonnie Crombie and Brampton Mayor Patrick Brown have their own opinions on what a “fair” deal could look like.

Crombie has long pushed for an independent Mississauga and believes that her city should be “made whole” for the contributions it has made as Brampton and Caledon grew.

However, Brown told reporters at the news conference that if his city isn’t made whole, it would be “catastrophic” for property taxes.

“Every single cent we put in to build that infrastructure in Mississauga, my residents expect back.”

When asked about Brown’s concerns, Clark said he thinks a deal will come that works for all three municipalities.

“The transition board will deal with financial matters, we believe there are good quality municipal services being delivered equitably and fairly now.”

Ontario to review other regions

In addition to Peel Region, the Ford government is reportedly planning to explore whether cities and towns in other regions could stand independently, including:

Halton
York
Durham
Niagara
Waterloo
Simcoe

Termination agreements for Peel Region employees

Restructuring Mississauga, Brampton, and Caledon into independent municipalities could result in significant job losses at Peel Region.

While many employees might be offered a new role with their respective city, it’s important to understand your rights in the event that you are let go following the split.

In Ontario, non-unionized workers at Peel Region are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring.

This includes individuals working full-time, part-time, or hourly in the province.

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

LEARN MORE
• Severance pay for provincially regulated employees
• Mass layoffs in Ontario: Rights to severance
• Severance pay in a recession

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.