As economic pressures mount due to tariffs and rising costs,
many businesses may find themselves facing tough workforce
decisions. If you are a business owner wondering, "Can I lay
people off because of tariffs and price increases?" —
the answer is a resounding "maybe." But it's
complex.
The Legal Landscape: Layoffs vs. Terminations
Understanding the difference between a layoff and a termination
is essential when considering staff reductions. The approach varies
between unionized and non-unionized workplaces, each with its own
set of legal and procedural considerations.
Non-Unionized Workplaces
A "layoff" implies that employees will eventually
return to work. However, layoffs are regulated and subject to
specific legal conditions. Before laying off an employee, employers
must ensure that their employment contracts include layoff
provisions. Without such a provision, a layoff could be considered
a constructive dismissal, giving employees grounds to sue.
