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ARTICLE · 05 JUNE 2025

The U.S. Tariff Effect: Renegotiating Terms Of Employment – Avoiding Constructive Dismissal Risks

Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
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A continuation in our U.S. tariff effect series, a national analysis of the impact of tariffs on Canadian employers. For more information, check out BLG's Tariffs and Trade Resource Centre.

CanadaEmployment and HR
Adam Rempel
Adam Rempel
Duncan Marsden
Duncan Marsden
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A continuation in our U.S. tariff effect series, a national analysis of the impact of tariffs on Canadian employers. For more information, check out BLG's Tariffs and Trade Resource Centre.

In the face of the changing economic landscape, employers are confronted with difficult decisions. As the impact of the United States' tariffs are being felt across Canada, employers are having to take a hard look at their workforces, and search for ways to reduce their labour costs while maintaining their business activities. At the same time, employers are understandably loath to exit valued employees.

Employers may be considering aggressively downsizing their workforce. However, termination (and mass termination) liabilities can quickly balloon. By making a snap decision to downsize, employers may expose themselves to wrongful dismissal liabilities.

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