Being laid off can feel sudden, stressful, and unfair. At Monkhouse Law Employment Lawyers, our Toronto-based layoff lawyers help you understand your rights and recover the full compensation you deserve. Your first step is a free 30-minute phone consultation — a chance to share your situation and learn how we can help before you make any decisions.
With a team of over 20 experienced employment lawyers focused exclusively on representing employees, Monkhouse Law has the expertise and resources to handle complex layoff and severance cases across Toronto and Ontario. We regularly act for individuals impacted by layoffs, ensuring they receive the maximum severance and benefits available under Ontario law. Our team has recovered fair severance for thousands of clients and continues to be recognized as a leader in employment law.
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Understanding Layoffs in Toronto
Under Ontario’s Employment Standards Act (ESA), employers can temporarily lay off employees for limited periods — but only if their employment contract explicitly allows it. A “temporary layoff” generally cannot exceed 13 weeks in any 20-week period, or 35 weeks if benefits are maintained. When those limits are exceeded — or if no layoff clause exists — the layoff becomes a termination, entitling the employee to severance pay and reasonable notice under common law.
If you’re looking for a broader explanation of layoff laws across the province, you can also visit our Ontario Layoffs Guide.
Many layoffs are actually constructive dismissals, meaning your employer effectively terminated your employment without cause or notice. Our Toronto layoff lawyers can review your situation and determine whether your layoff is legal or if you are owed compensation.
Learn more about Constructive Dismissal in Ontario.
Fighting for Bonuses and Benefits After a Layoff
When employees are laid off, employers often tell them that bonuses, commissions, or benefits are forfeited — but this is frequently incorrect. Under Ontario law, if bonuses or benefits formed part of your regular compensation, they must be included in your severance entitlements.
Our Toronto layoff lawyers regularly fight for employees’ bonuses after layoffs, reviewing incentive plans, past payments, and contractual wording to secure the compensation you’ve earned. If your employer has withheld a bonus or benefit, you may be owed thousands more than offered.
Wondering what you’re owed after a layoff? Try our Severance Pay Calculator to estimate your severance.
Is Your Layoff Legal in Ontario?
Not every layoff is lawful. Under Ontario’s Employment Standards Act (ESA), employers must follow strict rules — and many don’t. If any of the following apply to you, your layoff may actually be a termination, which means you could be owed full severance pay and benefits:
- There’s no layoff clause in your employment contract
- The layoff has lasted longer than ESA limits
- Your hours, pay, or role changed significantly after the layoff
- You were asked to sign a release in order to receive severance
These situations are common — and often misunderstood. Our Toronto layoff lawyers can review your documents, explain your rights in plain language, and help you claim the compensation you’re legally entitled to. See how Wrongful Dismissal can apply to layoffs.
Landmark Layoff Case: Bank Employee Reinstated
Monkhouse Law acted for a long-term bank employee who was unjustly dismissed after being told their role was eliminated. The employer argued it was a legitimate layoff. In M. v. Bank of Montreal (2019 CarswellNat 4762; 2020 CarswellNat 2661), the adjudicator rejected the bank’s argument, awarded the 18-year employee 22 months’ notice plus legal fees, and ordered reinstatement. In a subsequent decision, the employee received over $65,000 in legal costs. This precedent underscores that employers cannot disguise a termination as a layoff — and that employees have strong rights when represented by experienced counsel.
Layoffs in Toronto
Layoffs are affecting employees across nearly every industry in Toronto — from major banks and tech firms to airlines, manufacturers, and retail employers. Our team at Monkhouse Law Employment Lawyers has represented employees impacted by workforce reductions in all of these industries.
While employers often frame layoffs as temporary or routine, they can amount to a termination under Ontario law, entitling you to full severance pay and benefits. We help employees understand their rights, assess the fairness of their severance packages, and take action to recover the compensation they deserve.
To stay informed, explore our latest layoff insights for non-unionized companies in Canada covering a range of industries, including banking, technology, airlines, and manufacturing and more.
How Our Toronto Layoff Lawyers Help
- Review your employment contract, layoff notice, and severance offer
- Determine whether your layoff was lawful or constitutes dismissal
- Calculate your full severance entitlement, including bonuses and benefits
- Negotiate directly with your employer or pursue legal action if necessary
- Guide you through every step with clarity and transparency
Our firm combines over 10 years of experience with a proven record of success in complex layoff, termination, and severance cases across Toronto.
Recognized Across Canada
Monkhouse Law has been quoted in national media, including CBC News, The Globe and Mail, and Canadian HR Reporter, for its leadership in employment-law matters. We have represented thousands of employees since 2013, consistently achieving fair outcomes in negotiations and before tribunals and courts.
Speak With a Layoff Lawyer in Toronto
If you were recently laid off — even temporarily — you may be entitled to months of additional pay. Don’t sign a release or severance agreement until you know your rights. Contact us today for a free 30 minute phone consultation.