Sherritt Layoffs: 280 Jobs Affected in Fort Saskatchewan

Sherritt International announced on November 4, 2026, that it will temporarily lay off approximately 280 employees at its Fort Saskatchewan, Alberta refinery. The layoffs represent 47% of the company’s Canadian workforce and are expected to last approximately 90 days.

Sherritt stopped metals refining operations in June after running out of feed inventory. The company is working to restart production, but hasn’t confirmed when operations will resume or whether every affected employee will return.

Temporarily laid off by Sherritt? You have severance rights even if the company intends to recall you. For non-unionized employees in Alberta, a temporary layoff  can amount to a termination.

Sherritt Layoffs: What’s Happening In Fort Saskatchewan?

Sherritt is reducing costs while working to restart its nickel and cobalt refining operations in Alberta.

• May 7, 2026: Sherritt suspended direct participation in its Cuban joint venture operations following expanded U.S. sanctions affecting business with Cuba.
• June 22, 2026: The Fort Saskatchewan refinery stopped metals refining after its feed inventory was depleted.
• October 19, 2026: Sherritt received an initial emergency licence from the U.S. Treasury Department as part of its efforts to restore operations.
• November 4, 2026: Sherritt announced approximately 280 temporary layoffs, affecting 47% of its Canadian workforce.
• Next 90 days: The company expects the layoffs to last approximately three months, although employees may be recalled earlier.

According to Sherritt’s November 4 announcement, ammonia fertilizer and sulphuric acid production, essential maintenance and environmental safety work will continue during the layoff period.

The company is also seeking financing and additional regulatory approvals to restart refining operations.

For affected employees, the biggest question is what happens if the temporary layoff continues or their position is eventually eliminated.

Can Sherritt Temporarily Lay Off Employees Without Paying Severance?

Not necessarily. Calling a layoff temporary doesn’t automatically mean an employer can impose it without consequences.

Under Alberta employment standards legislation, temporary layoffs are generally limited to 90 days within a 120-day period. Certain exceptions can apply.

However, those statutory rules are only part of the picture.

For non-unionized employees, an employer does not have an automatic right impose a temporary layoff. Without that right, the layoff could amount to constructive dismissal, giving the employee a claim for severance before the 90-day period expires.

Don’t assume you must wait three months before speaking with an employment lawyer.

What Happens If Sherritt Doesn’t Recall You After 90 Days?

Under Alberta’s general temporary layoff rules, employment ends on the 91st day if an employee hasn’t resumed work within the permitted period.

At that point, severance pay is owed. For non-unionized employees, the amount owed may be substantially more than the minimum termination pay required by Alberta employment standards legislation.

Your age, years of service, position, compensation and employment agreement all matter.

A company’s financial difficulties or inability to restart production doesn’t automatically eliminate its termination obligations.

How Much Severance Does Sherritt Pay In Alberta?

There is no single severance package that applies to every Sherritt employee.

Non-unionized employees in Alberta can receive up to 24 months’ compensation, depending on their circumstances. This can be substantially more than the minimum termination pay required by law.

Your severance package may need to account for:

• Regular wages or salary during your legal notice period.
• Bonuses and incentive compensation that form part of your earnings.
• Health, dental, pension and other employment benefits.
• Other compensation provided under your employment arrangements.

Long-serving employees, specialized technical professionals, supervisors and managers may be owed substantially more than their employer’s initial offer.

Get an initial estimate using our free Severance Pay Calculator.

What If You’re Unionized At Sherritt?

Some employees at Sherritt’s Fort Saskatchewan operations are represented by Unifor.

If you’re unionized, your collective agreement governs your layoff, recall and termination rights. Those rules can differ from the rights of non-unionized employees.

Contact your union representative about recall periods, seniority, benefits and any available grievance procedures.

Samfiru Tumarkin LLP’s employment lawyers represent non-unionized employees in severance and wrongful dismissal matters, and do not assist unionized employees with severance packages or terminations.

Can You Collect EI During A Sherritt Temporary Layoff?

Employees temporarily laid off because of a shortage of work may qualify for Employment Insurance benefits if they meet the federal program’s requirements.

You don’t necessarily have to wait until your employment is permanently terminated to apply.

Request your Record of Employment and review the Government of Canada’s EI regular benefits information.

Receiving EI doesn’t automatically mean you’ve given up your severance rights.

What Should You Do If Sherritt Temporarily Lays You Off?

1. Get the layoff notice in writing. Keep the document showing when your layoff begins, its expected duration and any recall arrangements.
2. Review your employment agreement. Check whether it allows temporary layoffs and what happens to your benefits and compensation.
3. Keep records of communications. Save any updates about the refinery restart, recall dates or changes to your employment.
4. Get advice before resigning or signing a release. An employment lawyer can explain whether the layoff affects your severance rights.

Having your employment situation reviewed doesn’t mean taking Sherritt to court. We resolve the vast majority of severance disputes through negotiation.

Samfiru Tumarkin LLP represents non-unionized employees across Alberta, including Fort Saskatchewan and the Edmonton region. Our employment lawyers help employees understand their rights during layoffs and terminations.

Before you sign, always check first.

Sherritt Layoffs And Severance: Common Questions

How Many Employees Is Sherritt Laying Off?

Sherritt announced approximately 280 temporary layoffs on November 4, 2026, representing 47% of its Canadian workforce. The layoffs are centred on its Fort Saskatchewan refinery in Alberta.

How Long Will The Sherritt Layoffs Last?

Sherritt expects the layoffs to last approximately 90 days. Employees may be recalled sooner, but the company hasn’t confirmed a refinery restart date.

Can Sherritt Employees Get Severance During A Temporary Layoff?

Yes. A temporary layoff may amount to constructive dismissal for a non-unionized employee if the employer lacks the contractual right to impose it.

What Happens If Sherritt Doesn’t Recall Employees?

Under Alberta’s general rules, employment ends if the employee hasn’t resumed work within 90 days of temporary layoff. Exceptions apply. Non-unionized employees may be owed more than the statutory minimum termination pay.

Can Sherritt Employees Receive 24 Months’ Severance?

Non-unionized Alberta employees can receive up to 24 months’ compensation, depending on their age, years of service, position, employment agreement and other circumstances.

What If I’m Unionized At Sherritt?

Contact your union representative. Your collective agreement determines your layoff and recall rights, which may differ from those of non-unionized employees.

Disclaimer: This article provides general employment law information, not legal advice about an individual case. Sherritt’s restructuring announcements do not establish that the company has violated any employee’s rights.