NEWS REFERENCE
According to a report by The Canadian Press, published on November 18, 2025, Canada Post CEO Doug Ettinger confirmed the Crown corporation expects to lose up to 30,000 employees through retirement and voluntary departures by 2035 — as the company battles losses exceeding $1 billion in 2025 alone. The CFO described Canada Post as “effectively insolvent.” This article is written in response to that report and is intended to help affected employees understand their legal rights.
Canada Post plans to go from roughly 62,000 employees today to a much leaner organisation over the next decade. If you work at Canada Post — as a mail carrier, a sorting worker, or in any other role — this news affects you directly. Whether you are pushed out, offered a voluntary departure package, or simply watching this unfold with anxiety, knowing your rights now puts you in a much stronger position later.
What "attrition first" actually means for you
Canada Post’s CEO said the company will use “attrition first” — meaning they plan to shrink the workforce primarily by not replacing people who retire or voluntarily leave, rather than conducting mass layoffs. That sounds reassuring. But here is the reality: attrition strategies do not always stay that way. Canada Post already conducted a wave of management layoffs earlier in 2025. As financial pressure mounts, involuntary layoffs cannot be ruled out for any level of the organisation.
If you are offered a “voluntary departure” package — sometimes called a voluntary separation package or early retirement incentive — it is not the same as simply quitting. It is a negotiated exit. And like any exit, the first offer is rarely the best one.
What you are legally entitled to
Whether you are laid off directly or pressured into a voluntary departure, your legal entitlements do not disappear. Here is what the law provides:
Termination pay (notice)
Under Ontario’s Employment Standards Act (ESA), employees are entitled to a minimum of one week of notice — or pay in lieu — for each year of service, up to eight weeks. If you have worked at Canada Post for 15 years, for example, you are owed at minimum eight weeks of termination pay. But courts often award far more than the ESA minimum under common law — sometimes one month per year of service or beyond.
Severance pay
Canada Post is a large employer — well above the $2.5 million payroll threshold set by the ESA. If you have worked there for five or more years, you are also entitled to ESA severance pay on top of termination pay. This can be up to 26 weeks of additional pay — a significant amount for long-serving postal workers.
Vacation pay
Any vacation time you have earned but not yet used must be paid out to you when your employment ends. This is not optional — it is a legal requirement under the ESA.
Pension and benefits continuation
Your benefits — including health, dental, and life insurance — must continue during any working notice period. If you are let go immediately with pay in lieu of notice, your entitlement to benefits continuation during that period should be addressed in any package you receive. Do not assume it is included — check carefully.
Common law notice — often much more
The ESA sets only the floor. Ontario courts regularly award employees additional compensation under common law, based on factors like your age, how long you worked there, your position, and how easy it is to find similar work. For a long-serving Canada Post employee in their 50s, this amount could be substantial — and it is something many employees never pursue simply because they did not know it existed.
Your union matters — but it is not the whole picture
Most Canada Post employees are represented by the Canadian Union of Postal Workers (CUPW), which is currently in an ongoing labour dispute with the corporation. Your collective agreement provides important protections — including seniority rights, recall rights, and grievance procedures — that go beyond what the ESA offers.
Your union should be your first call if you receive any notice of layoff or a voluntary separation offer. But remember — your union represents the membership as a whole, not you as an individual. If you believe your personal rights have been violated, or if you want an independent assessment of whether a package is fair, speaking with an employment lawyer separately is always a smart move.
Mistakes you must avoid
Signing the first offer immediately
Voluntary departure packages are negotiable. The first number on the page is rarely the final one. Do not sign until you have had it reviewed.
Assuming “voluntary” means you owe nothing
Accepting a voluntary package often involves signing a release that waives your right to claim anything further. Understand exactly what you are giving up before you sign.
Delaying your EI application
Apply for Employment Insurance as soon as your layoff is confirmed. Every week you wait is a week of income you may not get back.
Not keeping your records
Save all written notices, emails, and any communications about your departure. If a dispute arises later, documentation is everything.
What to do right now
(1) Contact your union. Get clarity on your seniority standing, recall rights, and what your collective agreement says about layoffs and voluntary departure packages.
(2) Do not sign anything yet. Whether it is a separation agreement, a release, or a voluntary departure form — take time, read everything, and get independent advice before putting your name on it.
(3) Speak with an employment lawyer. Most offer a free first consultation. In 30 minutes, a lawyer can tell you whether the package you have been offered is fair — and what you may actually be owed. Given how much money is at stake for a long-serving postal worker, that conversation is always worth having.
(4) Write down everything. Keep a record of all conversations, emails, and notices from your employer. These details matter if you need to make a claim later.
(5) Apply for EI immediately. Do not wait for the process to fully play out. Apply as soon as your departure date is confirmed at Canada.ca.
The bottom line: Canada Post’s financial problems are not your fault. You showed up, you did the work, and you deserve to leave — if it comes to that — with everything the law entitles you to. A layoff or voluntary departure is not the end. But how you handle the next few weeks will determine how much you walk away with.
