Mass Layoffs in Ontario: The Updated ESA Rules Employers Must Follow Before Giving a Single Notice

Mass layoffs in Ontario are not just an HR process they are a heavily regulated legal procedure with strict sequencing requirements, mandatory documentation, and notice periods that cannot be corrected after the fact. Two sets of amendments to the Employment Standards Act, 2000 took effect in 2025, adding new mandatory documents and a new employee entitlement to job-seeking leave during a mass termination. Getting the process wrong even by one step out of sequence can restart the notice period entirely and create significant liability. This guide explains what is now required.

The 2025 changes employers must know

What counts as a mass termination in Ontario?

Under Ontario's Employment Standards Act, 2000, a mass termination occurs when an employer terminates 50 or more employees at the same establishment within a four-week period. Once this threshold is met, the group notice requirements, mandatory documentation, and Form 1 obligations all apply. Individual notice entitlements continue to apply alongside the group notice the group notice does not replace them.

The required group notice periods

The required sequence order matters

The Employment Ontario Career Supports information sheet

As of July 1, 2025, employers must provide every affected employee with the Employment Ontario Career Supports information sheet on the first day of the notice period. This is a Ministry-published document available in English and French that outlines job search services, retraining programs, financial supports including transportation and dependent care subsidies, labour market information, and access to apprenticeship programs. Failing to provide the current version of this document is an independent ESA violation. Employers must ensure they are using the most current version published by the Ministry of Labour at the time of the mass termination.

Job-seeking leave: new right effective November 27, 2025

Employees who receive working notice as part of a mass termination now have the right to three unpaid days of job-seeking leave during the notice period. This leave is available for attending interviews and other job-seeking activities. The right applies where the employee is serving working notice it does not apply where pay in lieu replaces 75 percent or more of the statutory notice period. Employers cannot penalize employees for taking this leave.

Severance pay obligations in a mass layoff

In addition to group notice, employees may be entitled to statutory severance pay under the ESA where they have five or more years of service and the employer's Ontario payroll meets the $2.5 million threshold, or where 50 or more employees are terminated within a six-month period due to permanent closure. Statutory severance is calculated at one week per year of service including partial years, up to a maximum of 26 weeks. This is separate from and in addition to the termination notice obligation.

Common law exposure: the most significant financial risk in a mass layoff

Where employment contracts do not contain valid, enforceable termination clauses, employees may be entitled to common law reasonable notice which is calculated on age, length of service, position, and the availability of similar work, and which can significantly exceed the ESA group notice periods. Common law notice awards can reach 24 months or more for senior or long-service employees and must include all compensation elements including salary, bonuses, benefits, commissions, and pension contributions. A mass layoff without enforceable termination clauses across the affected group creates compounding wrongful dismissal exposure that can be extremely costly.

Record-keeping requirements for mass terminations

Employers must retain for at least three years: a copy of the filed Form 1, proof of delivery to each affected employee, the version of the Employment Ontario Career Supports information sheet used, individual notice letters and any pay in lieu calculations, and records of all communications with affected employees during the notice period. These records are essential in the event of a Ministry investigation or wrongful dismissal claim.

Practical takeaways for Ontario employers