A mass termination in Ontario occurs when an employer terminates 50 or more employees at an establishment within a four-week period. When the rules apply, employees receive enhanced minimum notice under Ontario’s Employment Standards Act (ESA).
Ontario’s mass termination rules require 8, 12 or 16 weeks of notice, depending on how many employees lose their jobs. But that is still only an ESA minimum. Many non-unionized employees are entitled to substantially more severance pay in Ontario under common law.
Being one of hundreds of employees laid off at the same time does not turn severance into a one-size-fits-all calculation. Your full entitlement still depends on your individual circumstances and can reach 24 months’ pay.
On This Page:
- 1. What Is a Mass Termination?
- 2. How Much Notice Are Employees Owed?
- 3. What Must the Employer Do?
- 4. Severance After a Mass Termination
- 5. Do Remote Workers Count?
- 6. Your Rights During the Notice Period
- 7. What Should You Do?
What Is a Mass Termination in Ontario?
Ontario’s mass termination rules apply when an employer terminates 50 or more employees at an establishment within the same four-week period, subject to a limited statutory exception.
Mass terminations commonly happen during:
- Large corporate restructurings
- Company-wide downsizing
- Plant or facility closures
- Retail or office closures
- Mergers and reorganizations
- Large-scale position eliminations
The reason for the layoffs does not reduce the employer’s obligation to provide proper notice and compensation. A restructuring, downturn or decision to eliminate an entire department can explain why jobs are disappearing, but employees still retain their termination and severance rights.
If your job has been eliminated permanently, see our guide to permanent layoffs in Ontario.
Does every layoff of 50 employees qualify?
No. Ontario has a narrow exception when both of these conditions are met:
- The employees being terminated represent no more than 10% of employees who have worked at the establishment for at least three months; and
- The terminations are not caused by the permanent discontinuance of all or part of the employer’s business at the establishment.
If that exception applies, employees receive the ordinary individual ESA notice rules instead of the mass termination notice periods.
How Much Notice Is Required for a Mass Termination in Ontario?
The minimum notice period is based on the number of employees being terminated, not each employee’s individual years of service.
| Employees Terminated | Minimum ESA Notice |
|---|---|
| 50 to 199 | 8 weeks |
| 200 to 499 | 12 weeks |
| 500 or more | 16 weeks |
This can give eligible shorter-service employees significantly more statutory notice than they would receive under Ontario’s normal individual termination rules.
But 8, 12 or 16 weeks is not necessarily your full severance entitlement. These are minimum mass termination notice periods under the ESA.
Can the employer pay instead of providing working notice?
Yes. The employer can provide working notice, termination pay instead of notice, or a combination that satisfies its statutory obligations.
If you are expected to continue working until the layoff date, see our guide to working notice in Ontario.
What Must an Employer Do During a Mass Termination?
Ontario imposes additional requirements on employers carrying out a mass termination.
Submit Form 1 to the Director of Employment Standards
The employer must complete and deliver a Form 1 — Notice of Termination of Employment to the Director of Employment Standards.
The mass termination notice period does not start until the Director receives the Form 1.
This matters. If an employer tells employees that an eight-week notice period has started but waits several weeks to submit Form 1, those earlier weeks do not count as valid statutory mass termination notice.
Give employees a copy of Form 1
On the first day of the notice period, the employer must:
- Provide each affected employee with a copy of Form 1; and
- Post a copy in the workplace where affected employees will see it.
Provide Employment Ontario career-support information
Since July 1, 2025, employers initiating a mass termination must also give affected employees the most recent Employment Ontario Career Supports information sheet on the first day of the notice period.
The information identifies provincial services available for job searching, skills training and employment support.
How Much Severance Are You Owed After a Mass Termination?
Mass termination notice and full severance are not the same thing.
Ontario employees can have rights at three different levels:
1. Mass termination notice under the ESA
Eligible employees receive 8, 12 or 16 weeks of minimum notice or termination pay when the mass termination rules apply.
2. ESA severance pay
Some employees also qualify for statutory severance pay. This is a separate payment from termination notice and can provide up to 26 weeks of additional statutory compensation.
ESA severance pay has its own eligibility rules. An employee normally needs at least five years of service and the employer must meet the statutory payroll test or the qualifying permanent business-closure test.
3. Common-law severance
For many non-unionized employees, this is where the largest entitlement exists.
Unless an enforceable employment contract validly limits your rights, full severance is assessed based on factors that include:
- Your age
- Your length of service
- Your position and responsibilities
- The availability of comparable employment
Depending on your circumstances, severance can reach 24 months’ pay.
Does the poor job market matter?
Yes. The availability of comparable employment is an important factor in determining common-law reasonable notice.
That can become especially important during a large industry-wide downsizing where hundreds or thousands of people with similar skills are suddenly competing for the same jobs.
This is one reason an employee’s full entitlement should be assessed individually rather than by simply accepting the standard package offered across the workforce.
Do Remote Employees Count Toward a Mass Termination in Ontario?
Yes. Ontario expanded its definition of an “establishment” for mass termination purposes to protect employees who work exclusively from home.
Since October 26, 2023, an employee’s home is included as an establishment if the employee:
- Works from home; and
- Does not work at another location where the employer carries on business.
This means exclusively remote employees can count toward the 50-employee threshold when determining whether Ontario’s mass termination rules apply.
If an employee works both from home and from an employer’s office or another business location, the employee is connected to that business location for mass termination purposes.
Your Rights During a Mass Termination Notice Period
If you receive working notice, you remain an employee until your termination date.
During the statutory notice period, your employer must:
- Maintain your wage rate
- Maintain the other terms and conditions of your employment
- Continue required contributions to benefit plans
- Pay the wages you are entitled to receive during the notice period
You now have job-seeking leave
Since November 27, 2025, employees who receive mass termination notice are entitled to up to three unpaid, job-protected days of job-seeking leave during the notice period.
You can use the leave for activities connected to finding new employment, including:
- Job searches
- Interviews
- Employment training
Can you resign before the mass layoff date?
Yes, but understand the effect on your compensation before you do.
Ontario has specific resignation-notice rules for employees who leave during a mass termination notice period. Your statutory severance rights and common-law claim can also be affected by how and when you leave.
If you find another job before your scheduled termination date, get advice before submitting a resignation.
What Should You Do if You’re Part of a Mass Termination?
- Don’t sign your severance package immediately. A release normally ends your ability to pursue additional compensation.
- Keep your termination documents. Save your termination letter, severance offer, Form 1 and any company communications about the layoffs.
- Review your employment contract. Don’t assume a termination clause validly limits your rights simply because you signed it.
- Calculate your individual severance. Don’t use a colleague’s package as the measure of what you should receive.
- Check all compensation. Salary, benefits, bonuses, commissions and other compensation can form part of your entitlement.
- Apply for EI promptly. You don’t need to wait for a severance dispute to be resolved before applying.
- Have the offer reviewed before signing.
Can you negotiate a severance package during a mass layoff?
Yes. The fact that hundreds of employees received similar packages does not make your individual offer non-negotiable.
If the package falls below your legal entitlement, you can pursue the difference. See our guide to negotiating a severance package in Ontario.
What if the company says it can’t afford more severance?
Financial pressure or restructuring does not automatically reduce your legal entitlement. If the employer remains operating, it still has to satisfy its termination obligations.
If the company is insolvent, bankrupt or entering creditor protection, different rules can affect how unpaid compensation is recovered. See our guide to employee rights when a company goes bankrupt in Canada.
Have Your Mass Termination Severance Package Reviewed
Losing your job alongside dozens or hundreds of co-workers can make a severance package feel standardized and non-negotiable. It isn’t.
The Ontario employment lawyers at Samfiru Tumarkin LLP can review your employment contract and termination package, calculate your individual entitlement and determine whether the offer reflects the compensation you’re owed.
If the package falls short, we can negotiate directly with your employer. The process doesn’t need to be overwhelming, and most severance matters can be addressed without a lengthy court battle.
Employees in the GTA can speak with our Toronto severance pay lawyers. Employees in Eastern Ontario can contact our Ottawa severance pay lawyers. We also assist employees through our Hamilton severance pay lawyers.
Before you sign, always check first.