CLASS ACTIONS
MASS TERMINATIONS

STACEY REGINALD BALL

82 SCOLLARD STREET TORONTO, ON, M5R 1G2

Call: (416) 921 7997 Ext.225     Email: srball@82scollard.com

A class action is a type of lawsuit where the plaintiff is a group of individuals with a common complaint against the defendant.

PLAINTIFF GROUP

Judicial Economy

There can be hundreds or even thousands of plaintiffs. Class actions are special in that the plaintiff group has be certified by the courts before the lawsuit can continue. Among other requirements, the plaintiff must demonstrate that there is a common issue to litigate and that a class proceeding would be the preferable procedure for resolving that common issue. Class actions have a policy objective of access to justice and judicial economy. Class actions have now been permitted in employment law cases. Class actions have been made for overtime, holiday pay, vacation and sometimes for wrongful dismissal. In recent developments, class actions have recently been launched by workers against their former employer with respect to the mishandling of “mass terminations”. See Dillon v. Novi Canadian ltd. (1999), 45 C.C.E.L. (2d) 23 (Ont. S.C.J.). Many large organizations will feel the need to restructure their operations, sometimes terminating large groups of employees to reach this goal. The Employment Standards Act has special rules when it comes to “mass terminations”. In Ontario, a mass termination is when 50 or more employees are terminated within a four-week period. Employers who are planning to take this step must complete and submit a Form 1 (Notice of Termination of Employment) to the Ministry of Labour’s Director of Employment Standards, who will respond with a letter of acknowledgement. The employer must also provide the employees with individual notices of termination and they must post a copy of the Form 1 on the first day of the notice period.

​As for notice, an employee’s notice is not determined by the length of their employment. Instead, the amount of notice is based on the number of employees who were terminated. If 50 to 199 employees were terminated, they each receive eight weeks’ notice. If 200 – 499 employees were terminated, they each receive 12 weeks’ notice. If 500 plus employees were terminated, they each receive 16 weeks’ notice. There are exceptions to these special mass-termination notice rules such as if the total number of employees terminated is less than 10% of all employees employed for at least three months or if none of the terminations are caused by the permanent closure of the employer’s business at the establishment. Please note that the above information does not constitute legal advice. It is general information about the law. If you require legal advice with an employment issue, please contact the experts at Ball Professional Corporation.

Mass terminations in Toronto – what is it and how can we help?

What are Mass Terminations?

In Ontario, employers owe non-unionized employees more severance pay if they are let go as part of a mass termination. The minimum severance entitlements for a mass termination are greater than the entitlements a dismissed individual has in a regular dismissal (non-mass termination).
A mass termination is defined in the Employment Standards Act (ESA) as the termination of 50 or more employees at one workplace over a four-week period.

 What are the Employer Obligations in Mass Terminations?

An employer has different obligations in a mass termination situation depending on how many employees are dismissed. The statutory minimum notice period for a mass termination is:

  • 8 weeks’ notice or pay in lieu if 50 – 199 employees are terminated
  • 12 weeks’ notice or pay in lieu if 200 – 499 employees are terminated
  • 16 weeks’ notice or pay in lieu if 500 or more employees are terminated

How Our Lawyer Can Help Those Affected by Mass Terminations in Toronto

It is wise to speak with a lawyer prior to accepting the severance offer from your employer. While a mass termination event can be scary, the employer cannot force you to sign the severance letter.
Severance letters may include a termination clause that tries to limit the amount of severance you can receive and/or non-compete clauses that prevent you from finding work elsewhere.
These are things worthy of speaking with a lawyer. You have two years to pursue your severance entitlements from the date of the termination. There are other factors that may increase your severance entitlements, including tough economic conditions in your industry, or a full economic recession. The harder it is for you to find new employment, the greater the compensation might be.

MASS TERMINATION

CONSULTATIONS

ADDITIONAL ARTICLES ABOUT EMPLOYMENT LAW

Rules of Termination in Ontario

September 7, 2020

List of Rules Which Apply to Ontario Employers in Cases of Mass Termination Pursuant to section 58(1)...

Learn More

Sick Day in Ontario

November 13, 2020

If an employee is sick, incapacitated or hurt physically for any reason, they can take days off...

Learn More
Canadian Employment Law

Canadian Employment Law

Mr. Ball is the author of the authoritative and definitive text Canadian Employment Law, published by Canada Law Book (a division of Thomson Reuters). The text is used and cited by lawyers, law schools and judges across Canada.

To order Mr. Ball’s Canadian Employment Law, please visit the Carswell Store by clicking here or on the button below.

CLIENT REVIEWS

Google Reviews

Beijia Zhang
Beijia Zhang
21:41 09 Apr 23
Stacy helped me with my case with my previous employer. I have to say that Stacy is the best lawyer I ever met. He worked incredibly hard on my case and helped me fight over the wrongful dismissal, eventually he solved my issue and we settled at a very good deal. I was super impressed by his professionalism and integrity, plus he has passion towards what he is doing. Stacy is the best of all! One of a kind!!!!!!!!
R Cooray
R Cooray
19:11 04 May 23
Stacey and his amazing team did a fantastic job with my case. Their professionalism and many years of experience helped me to settle my case. Stacey has written some of Canadian employment law. I would highly recommend to anyone to seek advise before signing any documents.
Marion Gordon
Marion Gordon
10:27 13 Jul 23
Stacey Ball fought hard in my wrongful dismissal case and we came out ahead. I am very happy with him and his team. I strongly recommend him if you have a wrongful dismissal case.
Wilma Carlson
Wilma Carlson
17:43 07 Jul 23
Stacey's professionalism and strong communication skills helped me feel informed and reassured throughout the entire process. Thanks to his tenacity and unwavering support, I achieved a successful outcome that I am truly grateful for.
Sharon Smerek
Sharon Smerek
18:28 14 Jun 23
Stacey R. Ball has bar admittance in British Columbia, Alberta, and Ontario. Will give excellent advice, and if you have a case , he will proceed on your behalf . Stacey Ball is known as the best employment lawyer across Canada.
PATRYK Szpindler
PATRYK Szpindler
11:22 03 Oct 23
Working with Stacey Ball was the best decision for my employment-related case. He was responsive to my questions, addressed all my concerns promptly and, most importantly, secured a fair resolution. Thanks again!!
Pilar M
Pilar M
11:19 03 Oct 23
Stacey R. Ball and his team represented me in my wrongful dismissal case. They exhibited a solid grasp of employment law and guided me through the legal proceedings. They were very diligent, especially in updating me on the status of my case. I really appreciate what they've done for me.
Hanan Wahib
Hanan Wahib
15:16 22 Jan 24
I am very grateful for the outstanding job that Stacy Ball and his team have done.. I want to thank you Stacy for your exceptional professional expertise and unwavering support throughout my case. Your dedication, knowledge, and genuine compassion made a significant impact on the positive outcome.I am grateful to have encountered you both as a lawyer and as a person of great humanity.
Lisa Joslin
Lisa Joslin
20:07 30 Jan 24
I had the pleasure of working with Stacey Ball and his assistants. From the start to the finish, my experience with them was nothing short of outstanding.Stacey possesses an in-depth knowledge of employment laws and regulations. His expertise was evident as he navigated through my case. He took the time to understand my situation, ensuring that I felt heard, understood, and supported throughout the entire process.Communication was clear, prompt, and thorough, making a stressful situation more manageable.I highly recommend Stacey R Ball for anyone seeking expert employment law guidance. Overall, my experience was exceptional, and I am so very grateful for the positive resolution.
sean hogue
sean hogue
22:05 30 Jan 24
I recently used Stacey to resolve an employment issue and was very pleased with the result. This is the second time I've engaged his services over the years. Stacey is the consummate professional, extremely knowledgeable and I'm thankful for his skillful representation. I have also recommended Stacey to others who have experienced the same results.
Melanie Kirkpatrick
Melanie Kirkpatrick
17:34 04 Apr 24
I would highly recommend Stacey Ball. If you're seeking an employment lawyer who is not only highly skilled but also genuinely cares about their clients, look no further than Stacey Ball. He is simply the best in the business!I must also applaud his outstanding assistant, Amy. With Amy's proactive communication, together, they form an unbeatable team!
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