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Mass Layoff in Ontario: Updated Rules and Guidance
Updated to include July 1, 2025 and November 27, 2025 legislative changes
Mass layoffs are becoming more common in Ontario across industries. For employers, the legal obligations tied to mass terminations are strict, and recent amendments to the Employment Standards Act, 2000 (ESA) have added new requirements that must be followed to avoid fines, Ministry investigations, and wrongful dismissal claims.
This updated guide explains exactly what Ontario employers must do in a mass layoff, including Form 1 obligations, notice requirements, severance rules, and the new mandatory documents introduced in 2025.
What Counts as a Mass Layoff in Ontario?
Under the ESA, a mass termination occurs when an employer terminates:
- 50 or more employees at the same establishment within four weeks.
Once this threshold is met, special notice rules and documentation requirements apply.
As Christopher Achkar, employment lawyer and founder of Achkar Law, explains:
“Mass layoffs in Ontario carry complex legal obligations that, if overlooked, can create significant liability for employers. Our experience helping businesses navigate these rules ensures you can make informed decisions, consulting a lawyer first is always the safest step.”
1. Employers Must Provide the Employment Ontario Career Supports Information Sheet
As of July 1, 2025, employers must give each employee affected by a mass termination a mandatory Employment Ontario Career Supports information sheet.
Employers must provide the sheet:
- On the first day of the statutory notice period
- To every employee included in the mass termination
- Using the most current version published by the Ministry of Labour (available in English & French)
The information sheet outlines:
- Job search and retraining services
- Financial supports (transportation, dependent care, training subsidies)
- Labour market information for 500+ occupations
- Access to apprenticeships and employment programs
Failing to provide this document is an ESA violation.
2. Required Documents Employers Must Now Give in a Mass Layoff
Effective July 1, 2025 onward, employers must provide the following three documents together, on the first day of the notice period:
- Individual notice of termination
- (Or pay in lieu of notice if applicable)
- A copy of Form 1 (Notice of Termination of Employment)
- This must first be filed with the Director of Employment Standards.
- The Employment Ontario Career Supports information sheet (NEW)
- Must be the latest Ministry version.
3. Requirement to File Form 1 BEFORE Giving Notice
Before giving termination notices to employees, the employer must:
Step 1 — File Form 1 with the Director of Employment Standards
- You receive a confirmation of receipt.
Step 2 — Post a copy of Form 1 in the workplace
- Must be visible to all employees.
Step 3 — Provide individual notices + the information sheet
- This begins the statutory notice period.
If Form 1 is not filed first, the notice period does not legally begin.
4. Mass Termination Notice Periods
The ESA requires employers to provide group notice based on the number of employees affected:
| Number of Employees Terminated | Minimum Notice Required |
|---|---|
| 50–199 | 8 weeks |
| 200–499 | 12 weeks |
| 500 or more | 16 weeks |
This group notice is in addition to individual notice entitlements, unless pay in lieu is provided
5. Job-Seeking Leave During Mass Terminations
(NEW effective Nov. 27, 2025)
Employees receiving notice as part of a mass termination now have the right to:
Three unpaid days of job-seeking leave
This leave:
- May be used to attend interviews
- Applies only when employees receive a working notice
- Does not apply where pay in lieu replaces 75% or more of the statutory notice period
Employers must allow employees to take this leave without penalty.
6. Severance Pay in a Mass Layoff
In addition to group notice, employees may qualify for statutory severance pay if:
- They have 5+ years of service, and
- The employer has a payroll ≥ $2.5M, or
- 50+ employees are terminated within a 6-month period due to permanent closure
Statutory severance = 1 week per year of service (max 26 weeks).
7. Common Law Severance: A Major Risk in Mass Layoffs
If employment agreements do not contain enforceable termination clauses, employees may claim common law reasonable notice, which often far exceeds ESA minimums.
Courts consider:
- Age
- Length of service
- Nature of position
- Availability of similar work
- Economic climate
Common law notice can exceed 24 months and must include:
- Salary
- Benefits
- Bonuses
- Commissions
- RRSP/pension contributions
Failing to offer fair severance can trigger costly wrongful dismissal claims.
8. Record-Keeping Requirements
Employers must retain for at least 3 years:
- Copy of Form 1
- Proof of delivery to employees
- Copy of the Employment Ontario information sheet version used
- Notice letters and communication records
Documentation is critical in case of Ministry investigations or legal disputes.
9. Why Employers Need Legal Support During Mass Layoffs
Mass terminations carry significant legal risk. Achkar Law assists employers by:
- Ensuring ESA compliance with all notice and document requirements
- Reviewing employment agreements to assess severance exposure
- Drafting lawful termination packages and releases
- Helping avoid wrongful dismissal and ESA claims
- Managing communications and risk throughout the layoff process
A single misstep, such as using the wrong version of the information sheet, can restart notice periods or trigger enforcement.
Conclusion
Mass layoffs in Ontario involve complex and evolving legal requirements. With the new 2025 ESA amendments, employers must now provide more documentation and ensure stricter compliance when executing group terminations.
Avoiding errors protects your organization from:
- ESA violations
- Ministry investigations
- Wrongful dismissal lawsuits
- Significant financial liability
Before initiating a mass layoff, employers should obtain legal advice to secure compliance and minimize risks.
One Wrong Move in a Mass Layoff Can Cost Your Company Millions.
Ontario’s mass termination rules are complex, and the 2025 ESA amendments added new obligations that employers cannot afford to overlook.
Failing to file Form 1 correctly, provide the mandatory information sheet, or calculate severance properly can expose your company to:
- ️ Penalties under the ESA
- Wrongful dismissal lawsuits
- Extended notice periods
- Costly reputational damage
Contact Achkar Law
Before you hand out a single notice, consult with an employment lawyer who has assisted employers in addressing mass layoffs.
Achkar Law provides end-to-end legal guidance to keep your business compliant and protected.
Your company’s legal and financial safety depends on it.
Book a confidential consultation today.
The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Achkar Law Professional Corporation and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Achkar Law Professional Corporation. ©