My Job Was Eliminated. Do I Still Get Severance in Ontario?
Being made redundant is still a dismissal. When your position is eliminated without cause, you are owed the same reasonable notice as anyone let go, and the business reason does not reduce it.
Key takeaways
- Being made redundant or having your role eliminated is still a without-cause dismissal.
- You are owed the same reasonable notice as anyone let go without cause.
- The employer's business reason, like restructuring or cost-cutting, does not reduce your severance.
- A company's financial difficulty does not lower your notice, and a weak job market can raise it.
- "Your position no longer exists" is not a reason you get nothing. It is often a reason you get more.
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When an employer says "this is not about your performance, your position has simply been eliminated," many people assume that means there is no severance to fight for. It is often the opposite. A genuine redundancy is still a dismissal, and because the employees affected are frequently long-serving and senior, the notice owed can be substantial. The business reason behind the cut does not shrink what you are owed.
✅Quick answer. Having your position eliminated is a without-cause dismissal, which means you are entitled to reasonable notice based on your age, service, role, and the job market, up to around 24 months. The employer's reason, restructuring, downsizing, or cost-cutting, does not reduce that entitlement, and a genuinely difficult job market can actually increase it. "Your role no longer exists" is not a reason to accept nothing.
Is being made redundant still a dismissal?
Yes. In law there is no separate, cheaper category for redundancy. When your employer ends your job because the position is being eliminated, that is a dismissal without cause. You did nothing wrong, which is exactly why it is a without-cause termination that carries the full obligation to give you reasonable notice or pay in lieu. The label "redundancy" changes the reason for the dismissal, not your entitlement.
Does the employer's business reason reduce your severance?
No. Courts assess your notice based on your own circumstances, the Bardal factors, not on why the employer decided to cut the role. A well-run, well-intentioned restructuring produces the same notice obligation as any other dismissal. In Russell v. The Brick Warehouse LP (2021 ONSC 4822), a 57-year-old employee with about 36 years of service whose position was eliminated was awarded 24 months, the top of the range. The redundancy did not lower the number; his age and long service pushed it to the maximum.
Does the company's financial trouble matter?
Not to your entitlement. An employer that is struggling, or even cutting staff to survive, still owes proper notice; its financial position is not a discount on your severance. If anything, tough economic conditions can work in your favour, because when comparable jobs are scarce, courts recognize it will take you longer to find work and may award a longer notice period. The weak market that cost you the job can also lengthen what you are owed.
Real Ontario redundancy cases
The case law consistently treats eliminated-position employees as fully entitled:
- Russell v. The Brick Warehouse LP (2021 ONSC 4822): position eliminated, age 57, about 36 years of service, awarded 24 months.
- Downham v. Lennox (County) (2005 CanLII 45197): a manager whose role was restructured out, age 50, 12 years, awarded 15 months.
- Leeming v. IBM Canada Ltd. (2015 ONSC 1447): a redundancy at a large employer, age 60, 8 years, awarded 10 months.
What if lots of people were let go at once?
If the employer eliminated 50 or more positions at one location within a short window, the ESA's mass-termination rules add enhanced statutory notice on top. But even in a large group layoff, that ESA amount is a floor. Most non-unionized employees are still owed the larger common law reasonable notice individually.
What should you do if your position was eliminated?
- 1.Do not accept a severance offer just because you were told the cut was not personal.
- 2.Note your age, length of service, and role, since those drive your notice, not the reason for the cut.
- 3.Keep the termination letter and any package documents, and do not sign a release on the spot.
- 4.Get advice. A free review values your notice properly, regardless of the redundancy label.
A redundancy is measured the same way as any severance and a wrongful dismissal claim. If you were instead put on an indefinite layoff rather than formally let go, see your rights when laid off, which can also amount to a dismissal.
Frequently asked questions
Do I get severance if my position is eliminated in Ontario?
Yes. Having your position eliminated is a without-cause dismissal, so you are owed reasonable notice based on your age, service, role, and the job market. The redundancy reason does not reduce your entitlement.
Does my employer owe less severance because it was a restructuring?
No. Courts set your notice on your own circumstances, not on why the role was cut. In Russell v. The Brick, a redundant long-service employee was awarded 24 months, the top of the range.
The company says it cannot afford severance. Does that lower what I am owed?
No. An employer's financial difficulty does not reduce your notice. In fact, a weak job market can increase it, because it may take you longer to find comparable work.
My whole team was laid off. Do I still get individual severance?
Usually yes. If 50 or more were let go, ESA mass-termination notice applies as a floor, but most non-unionized employees are still owed the larger common law reasonable notice individually.
Carmen Reyes
Legal Writer, Mirza Law
Carmen Reyes is a legal writer at Mirza Law in Toronto. She writes about constructive dismissal, workplace changes, and how Ontario employees can protect themselves when their job changes under them.
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