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ARTICLE · 07 AUGUST 2025

Restructuring Layoffs In Ontario: Know Your Rights When Companies Downsize

Layoffs during company restructurings are a reality in today's economy—but that doesn't mean you're powerless.

CanadaEmployment and HR

Layoffs during company restructurings are a reality in today's economy—but that doesn't mean you're powerless. In Ontario, employees affected by restructuring layoffs still have legal rights, and understanding them can make a major difference in what you walk away with.

From severance pay to extended benefits and wrongful dismissal claims, there's often more at stake than employers let on. In this blog, we'll explore how Ontario employment law protects workers during restructuring—and why it's so important to speak with a qualified employment lawyer in Toronto before signing anything.

What Is a Restructuring Layoff?

A restructuring layoff occurs when a company reorganizes its workforce—not because of performance, but potentially due to cut costs, merging of departments, or shift of strategy. It's often referred to as a "position elimination" or "department-wide layoff."

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