As layoff fears rise across Canada amid U.S. President Donald Trump’s trade war, many may be wondering: what should you do in those first days after a layoff if it happens to you?
The trade war is expected to impact hundreds of thousands of jobs across the country, Canadian political leaders have said, and markets have been floundering in recent weeks in response to the tariffs.
In Ontario, 120 people at steelmaker Ivaco were told they’d be temporarily laid off for one week next week, and last month, Canada Metal Processing Group announced a reduction of 140 production and office employees in Ontario and Quebec, citing the incoming tariffs.
And while it’s yet to be seen how many more layoffs could come, a recent poll conducted by Leger of 1,500 Canadian adults showed 40 per cent are concerned they could lose their job in the next 12 months.
Trump imposed a sweeping 25 per cent tariff on Canada and Mexico in early March. He also imposed a 25 per cent tariff on steel and aluminum imports last week, and is also threatening more global “reciprocal” tariffs on April 2.
If you have been laid off, Mike Shekhtman, senior regional director with Robert Half management consulting for western Canada, says the first thing to do is “take a big breath” and focus on your mental health and wellness.
“You need to be in a good headspace as you enter that next step in your career,” he said in an interview with Global News.
From there, people should start arranging resources available from your current employer that may help you find your next job, such as an outplacement type resource.
He also says to speak with your employer to ensure you have an up-to-date record of employment, which will help in applying for employment insurance.
If a layoff happens, many Canadians would likely be offered some form of severance, the compensation given to an employee when you lose your job through no fault of your own.
According to the federal government, you can review documents such as your letter of offer or an employee handbook to understand the terms of dismissal and your salary.
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The amount of money you may receive depends on various documents, including provincial or territorial regulations, your union’s collective agreement and your employment contract.
When you do get laid off, you’ll need to sign an agreement that contains the details of severance pay, something Ontario-based employment lawyer Puneet Tiwari said you should read carefully and, when possible, consult an employment lawyer or your union.
“Often employers short-change their employees, they never know what they’re entitled to unless a professional reviews what they’ve been given and provides proper advice,” said Tiwari, a partner at Levitt LLP Labour and Employment Lawyers.
“Do not sign anything until it’s reviewed. If they do a package and told you this is all that you’re entitled to, that may not necessarily be true.”
He added this can include whether you are entitled to the minimum requirement of statutory severance or common-law severance, which can depend on length of employment and your position.
Employment lawyer Teilen Celentano told Global News that under common law in most provinces, with the exception of Quebec, unless there’s a contractual term that limits your entitlement, “you’re entitled to a full severance package,” which he said can mean anywhere from a month’s pay to up to 30 months.
“What the courts try to do, in essence, is try to say how long do we think it would take someone, not necessarily the person who’s been terminated, but someone like them to find a new job and assess and award that amount of support,” said Celentano, an associate at Samfiru Tumarkin LLP.
Tiwari added it’s good to speak with an employment lawyer or union to ensure you’re getting the appropriate amount of notice, which can range from weeks to even months.
“As time moves forward and there’s more uncertainty and things aren’t resolved and the industries do not recover, and it’s harder for these people to get a new job, we’re going to see increased amounts of notice,” Tiwari said.
Once you’ve figured out your severance eligibility, you can look into applying for employment insurance, though financial advisor Ilan Kibel said it’s not something you can collect right away if you’re already receiving severance.
“So it really comes down to the timing and possibly reaching out to a lot of government organizations out there, the federal, provincial government(s) that will help people get a better understanding on how to navigate these circumstances,” Kibel, a partner and senior vice-president at BDO Canada Ltd.
The federal government notes any earnings paid or payable at the end of your employment or during your benefit period may affect the amount of benefits you receive and can delay the start date of your claim.
Aside from financial aspects, the first thing you may aim to do once laid off is look at finding a new job as severance and employment insurance won’t be enough to live off of full-time.
That’s why Shekhtman said Canadians should determine the types of roles and organizations that most interest you and get an understanding of the industries that may be more in demand than others.
“When you look at the U.S. tariffs and some of the impacts that they may have, some industries may be impacted more,” he said. “The only thing we know that is certain is uncertainty and change.”
Given that uncertainty, he said people should look at updating their online presence, such as matching your LinkedIn profile with your resume and utilizing networks to find potential jobs.
This could include university alumni groups, trade associations for industries, and even people you know personally who could share opportunities that “are a little bit under the radar.”
Shekhtman added amid the uncertainty, it’s also worth being proactive if you’re currently employed but concerned about your workplace being impacted by working on your resume, networking and improving your skills to become more appealing to other workplaces.
“It’s certainly not something that you hope or wish for, but having that type of contingency plan in place will allow you to be in a better position and perhaps a little less stressed knowing that you have been able to iron out some of those details in advance,” Shekhtman said.
— With a file from The Canadian Press
