NEWS REFERENCE
According to reports by The Toronto Star and Newsweek, both published August 28, 2026, U.S. tariffs of up to 50% are putting approximately 87,000 Canadian jobs at risk — with Ontario facing the steepest losses. American manufacturer RYAM has already announced the closure of its Quebec facility, affecting 425 workers effective September 15. The Canadian Labour Congress estimates 1.1 million Canadians work in industries directly exposed to these tariffs.
This Is Not Your Fault — But Your Rights Still Apply
Losing your job because of a trade war between two governments is one of the most frustrating situations an employee can face. You did nothing wrong. Your employer may have done nothing wrong either. But under Ontario law, the reason your job disappeared does not reduce what you are legally owed.
A tariff-driven layoff or closure is still a termination without cause. Your entitlements are the same as any other without-cause dismissal.
What You Are Entitled To
ESA termination pay
One week of notice or pay in lieu per year of service, up to eight weeks. This applies to every employee regardless of why the closure happened.
ESA severance pay
If you have five or more years of service and your employer’s payroll exceeds $2.5 million, you are entitled to an additional week’s pay per year of service — up to 26 weeks — completely separate from termination notice.
Common law reasonable notice
Beyond ESA minimums, Ontario courts may award significantly more based on your age, length of service, seniority, and how difficult it will be to find comparable work in a sector being hit hard by tariffs. The difficulty of finding work in a contracting industry actually strengthens your common law claim.
Mass termination protections
If your employer is closing or laying off 50 or more employees at once — which is highly likely in tariff-driven plant closures — Ontario’s mass termination rules apply. You may be entitled to enhanced notice of up to 16 weeks on top of your individual entitlement.
Vacation pay and benefits
All earned but unused vacation must be paid out in full. Benefits must continue throughout any working notice period. Check your final pay carefully.
If You Are Unionized
Contact your union representative immediately. Your collective agreement governs your layoff rights, recall entitlements, and severance — and those protections exist precisely for situations like this.
Your union may also have information about the government’s $7.5 billion worker support package and what programs may be available to you during this period.
Government Support Available to You
The federal government has announced a $7.5 billion support package for Canadian workers and businesses affected by the tariffs. This may include:
- Enhanced Employment Insurance access
- Transition and retraining support
- Community-level economic assistance for heavily affected regions
Apply for EI at Service Canada as soon as your employment ends. Do not wait for severance negotiations to conclude before starting your application.
What Happens If Employers Get It Wrong
Employers who skip proper notice, underpay severance, or fail to follow mass termination rules face:
- Ministry of Labour orders and fines
- Individual wrongful dismissal claims
- Class actions where large numbers of employees are affected
- Reputational damage in communities already hurting from job losses
What to Do Right Now
1/ Do not sign any release without legal advice — your employer may present a separation package quickly. That package includes a release ending all future claims. You are not required to sign immediately.
2/ Understand mass termination rules — if 50 or more people are being let go, your individual entitlement may be higher than you think.
3/ Document your years of service and full compensation — every year matters, and your full entitlement includes bonus, benefits, and vacation — not just base pay.
4/ Apply for EI immediately — do not delay. Waiting reduces your total benefit entitlement.
5/ Explore government support programs — the $7.5 billion package is specifically for workers in your situation. Find out what you qualify for.
6/ Get legal advice — especially if you are a long-service employee, a manager, or someone with significant variable compensation. The gap between what is offered and what is owed can be substantial.
The bottom line: You did not start this trade war. But you are paying the price for it. Ontario law does not reduce what you are owed simply because the cause was beyond anyone’s control. Know your rights, apply for every support available to you, and do not sign anything until you understand what you are giving up.
