Canada Post announced on February 6, 2025, that it had laid off nearly 50 management employees earlier that week as part of a corporate-wide restructuring to address significant financial and operational challenges. Approximately half of the affected employees were based in Ottawa, with the remainder located in Toronto and other regions across the country. The company emphasized that these layoffs will not impact service to Canadians (CTV News).
In January 2025, Canada Post also eliminated 20% of its senior executive roles, including the termination of three senior executives, among them the Chief Financial Officer. These actions are part of broader efforts to streamline operations and address ongoing financial difficulties (HRD Canada).
The Crown corporation has reported over $3 billion in losses since 2018, citing a decline in letter mail and increased competition in the parcel delivery market. In November 2024, around 55,000 Canada Post employees launched a nationwide strike, further impacting the organization’s financial situation (Ottawa CityNews).
Severance Packages for Canada Post Managers
Unlike unionized employees, who have collective agreements outlining their termination rights, non-unionized managers must navigate severance negotiations independently.
Given the complexities involved, it’s crucial for affected managers to understand their rights and ensure they receive the severance they are legally entitled to. Consulting with legal professionals experienced in employment law can provide guidance tailored to individual circumstances.
Under Canadian employment law, severance pay depends on several factors, including:
- Length of service – Employees with longer tenure are generally entitled to greater severance.
- Age – Older employees may receive higher severance due to challenges in re-employment.
- Position and responsibilities – Senior management roles often command more substantial severance packages.
- Availability of comparable employment – If it is difficult to secure a similar job in the current market, severance should be higher.
Employers often provide initial severance offers that are lower than what employees are legally entitled to. Consulting with an employment lawyer before signing any agreement is crucial to ensure fair compensation.
Potential Issues with Layoff Notices
Layoff notices from Canada Post may not always comply with employment laws. Common issues include:
- Insufficient notice periods – Some employees may not have received adequate notice as required by law.
- Improper termination classifications – Some layoffs may be labeled as ‘temporary,’ despite functioning as permanent terminations requiring full severance pay.
- Severance offers that don’t align with legal entitlements – Employers may initially offer severance packages that do not reflect full entitlements under the law.
Wrongful Dismissal and Canada Post Layoffs
If your termination was not handled properly, you may have grounds for a wrongful dismissal claim. This could include situations where:
- You were not given adequate notice or severance pay.
- You were pressured into accepting an unfair settlement.
- The layoff was discriminatory or retaliatory in nature.
Pursuing a wrongful dismissal claim can help you recover additional compensation beyond what was initially offered.
How Monkhouse Law Can Help
At Monkhouse Law, we specialize in employment law and have extensive experience assisting employees affected by layoffs. We provide:
- A free 30-minute phone consultation to assess your severance package.
- Negotiation services to help secure fair compensation.
- Representation in wrongful dismissal claims if your termination was not handled lawfully.
Contact Us for a Free Consultation
If you are a manager and were laid off from Canada Post, don’t sign anything without first understanding your rights. You may be entitled to more severance than initially offered.
Contact Monkhouse Law Employment Lawyers in Toronto today for a free consultation and let us help you secure the compensation you deserve.
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