What to do when you lose your job in Canada

Losing a job is a shock wherever you are. In Canada, the process is called a "layoff" or "termination" rather than "redundancy" (the British term), but the financial pressure and uncertainty feel exactly the same.

The good news is that most Canadian employees have stronger rights than they realise — and understanding them quickly makes a real difference. This guide covers what you're owed, how to get Employment Insurance started immediately, and what happens if you think your dismissal was handled unfairly.

What you're owed: statutory notice pay by province

When an employer terminates your employment, they must either give you advance written notice or pay you in lieu (a lump sum equivalent to that notice period's wages). These are the minimums set by provincial employment standards law. Your employment contract or collective agreement may give you more — your employer cannot give you less than the statutory floor.

Employment law in Canada is mostly provincial, not federal. About 90% of Canadian workers are governed by their province's Employment Standards Act. Only workers in federally regulated industries — banking, airlines, railways, telecommunications, and the federal public service — fall under the Canada Labour Code.

* BC minimum notice applies after 3 months of employment. Federal (Canada Labour Code) minimum is 2 weeks for any employee with 3+ months of service. The table shows approximate ranges — exact entitlements are calculated week by week under each province's legislation.

If your employer terminated you without providing the notice period or equivalent pay, you can file a complaint with your provincial employment standards office — this is free and does not require a lawyer. Ontario: ontario.ca/page/employment-standards-recovery · BC: labour.gov.bc.ca/esb · Alberta: alberta.ca/employment-standards.

Statutory severance (Ontario only)

Ontario is the only province with a statutory severance pay requirement — separate from and on top of notice pay. You qualify for Ontario severance if:

• You have 5 or more years of service with the employer, and
• The employer's Ontario payroll is $2.5 million or more, or the employer has terminated 50 or more employees in a six-month period

If you qualify: 1 week's regular wages for every year worked (including partial years, pro-rated), up to a maximum of 26 weeks. This is paid on top of your termination notice.

In all other provinces, any severance beyond statutory notice is either contractual (written into your employment agreement or company policy) or awarded through the courts under common law.

Common law notice: you may be owed significantly more

The notice periods in the table above are statutory floors — the absolute minimum your employer must pay. They say nothing about what you may actually be entitled to under common law.

Canadian courts have consistently held that most employees — particularly those who are not in a fixed-term or probationary role — are entitled to "reasonable notice" of termination. Courts consider:

• Length of service
• Age
• The character of your position (seniority, specialisation)
• How long it is realistically going to take you to find comparable work

For a mid-level professional in their 40s with 10 years of service, common law reasonable notice is often 10–15 months — far above the statutory 8 weeks. For senior or specialised roles, it can be longer still.

Employment Insurance (EI): your main income support

Employment Insurance is Canada's federally administered income-replacement program. You've been paying EI premiums on your wages throughout your working life — it's there for exactly this moment.

Apply as soon as your last day of work. There is no reason to wait. The date you apply is when your benefit period starts — waiting costs you money.

You can apply online at canada.ca/en/services/benefits/ei. Have your Social Insurance Number, banking details for direct deposit, and employer information to hand. Your employer must issue a Record of Employment (ROE) within 5 calendar days of your last day — you do not need a physical copy to apply.

Hours required

To qualify, you must have worked between 420 and 700 insurable hours in the past 52 weeks. The exact number depends on the unemployment rate in your economic region — in areas with higher unemployment, fewer hours are required. You can check your region's rate at canada.ca/en/employment-social-development/programs/ei/ei-list/reports/mapping.

Low-income families

If your family net income is below $26,886 and you have children, you may be eligible for the Family Supplement, which increases your benefit rate up to 80% of average earnings.

Staying on EI

You must submit a claimant report every two weeks confirming you are available for work and are actively job searching. Keep a log of your applications — two employer contacts per week is the usual requirement. Report all income honestly, including any part-time work. You keep 50 cents of EI for every $1 earned while on claim, which makes accepting part-time work financially sensible.

If you think your dismissal was unfair

There are three main routes to challenge a dismissal in Canada, depending on your situation.

1. Provincial employment standards complaint (free, no lawyer needed)

If your employer failed to provide the statutory minimum notice or severance, file a complaint with your provincial employment standards office. This is free, straightforward, and does not require legal representation. Time limits apply — in Ontario, you have 2 years from the violation; other provinces vary, so check promptly.

2. Unjust dismissal — federally regulated workers only

If you work in a federally regulated sector (banking, airlines, telecommunications, interprovincial railways, federal Crown corporations), and you have been employed for at least 12 continuous months, you can file an unjust dismissal complaint under the Canada Labour Code. Unlike a civil wrongful dismissal claim, an adjudicator can order reinstatement, not just money.

The deadline is 90 days from the date of termination. Missing this window means losing the right entirely. Contact the Federal Labour Program via canada.ca/en/employment-social-development/contact/labour.

3. Wrongful dismissal — civil courts (any province)

Any employee in any province can bring a wrongful dismissal claim through the civil courts. Most wrongful dismissal cases are about inadequate notice — your employer gave you less notice or severance than you would have been awarded under common law reasonable notice principles.

For smaller amounts, Small Claims Court (generally up to $35,000 in Ontario; limits vary by province) is accessible without a lawyer. For larger claims, most employment lawyers take wrongful dismissal cases on contingency — you pay no upfront fee, and the lawyer takes a percentage if you win or settle. The general limitation period for civil claims in most provinces is 2 years from the date of termination.

Your first financial moves

Get your Record of Employment (ROE) — your employer must issue this within 5 calendar days of your last day. Most issue it electronically directly to Service Canada; you can check at canada.ca/my-service-canada. You can apply for EI without it, but flag that it's outstanding.

Apply for EI immediately — even before your ROE arrives, even if you have received a severance package. The temporary measures mean severance no longer delays your EI, so there is no benefit to waiting.

Contact your mortgage lender or landlord. Most major Canadian banks will discuss a mortgage deferral — a temporary pause on principal and interest payments — for borrowers who have lost income unexpectedly. This is not automatic; you must call and ask. Be prepared to explain your situation. For renters, the rules vary by province, but your landlord may be more flexible than you expect if you communicate early.

Use our budget calculator to see exactly how many months your savings will cover your essential expenses — at notredundant.com. Enter your income, expenses, and savings, and you'll get a clear runway figure. Knowing this number removes one major anxiety and helps you make better decisions.

Review your employee benefits. If you had group insurance (life, disability, dental, extended health) through your employer, check when it lapses. You may have a conversion option to continue coverage without proving insurability — this window is typically 31 days and once it closes, it's gone.

RRSP and TFSA: do not raid these yet. Withdrawing from your RRSP triggers immediate income tax and permanently loses contribution room. Let EI do its job first and only draw on registered savings if genuinely necessary.

Retraining and upskilling

Canada has several funded retraining options for people who have lost their jobs. Many go unclaimed simply because people don't know they exist.

Canada Training Credit (CTC) — national

If you are aged 26–65 and have been filing tax returns, you accumulate $250 per year toward your Canada Training Credit Limit, up to a lifetime maximum of $5,000. You can use this to claim up to 50% of eligible course fees as a refundable tax credit — meaning you get money back even if you have no tax owing.

Check your current balance on your most recent Notice of Assessment from the CRA, or log in to CRA My Account at canada.ca/my-account. Eligible courses include those at universities, colleges, and certified occupational skills training providers.

Better Jobs Ontario (Ontario)

Better Jobs Ontario provides funding grants for unemployed workers to take skills training for up to two years. It covers tuition, books, and some living costs while you retrain for an in-demand occupation. Apply through Employment Ontario: ontario.ca/page/better-jobs-ontario.

WorkBC Centres (British Columbia)

WorkBC Centres offer free employment services including career counselling, skills training funding, and job search support. You do not have to be on EI to access them. Find your nearest centre at workbc.ca.

Alberta Supports (Alberta)

Alberta's provincial government funds skills training and career transition support through Alberta Supports centres. Services include training grants, career planning, and literacy upgrading. Start at alberta.ca/alberta-supports.

Service Canada Employment Centres — national

Service Canada offices across the country offer free employment services — job search workshops, resume help, and referrals to training. You do not need to be on EI to access most of these services. The Canada-funded Labour Market Development Agreements with provinces also fund many of the provincial programs above.

Skills for Success — national

This federal program funds organisations that help adults build foundational skills including literacy, numeracy, digital skills, and adaptability. It particularly targets workers who need to make larger career transitions. Check canada.ca/skills-for-success for current providers in your area.

Finding your next job

Job Bank — canada.ca/job-bank — is the federal government's free job listings database. It covers roles across Canada and is updated daily. You can set up alerts for specific job titles and regions, and upload your resume for employers to find you.

LinkedIn is essential in Canada, particularly for professional, technical, and management roles. Make sure your profile is current and set your status to "Open to Work" — this signals recruiters without necessarily making it visible to your current network.

Provincial job boards: Ontario's Employment Ontario network, BC's WorkBC portal, and Alberta's AIS (Alberta Immigrant Services) all have job listings alongside broader support services.

Your network. Research consistently shows that most jobs — especially better-paying ones — are found through personal connections rather than job boards. Let people know you are available. A short, honest message to former colleagues is almost always well-received.

Our main tool at notredundant.com generates a personalised job links page based on your location and previous industry, so you get the right boards for your situation rather than a generic list.

If you're 50 or over

Older workers face particular challenges after job loss — longer job searches, industry bias, and the concern that this disruption is coming close to retirement. The good news is there are specific supports.

Common law notice is typically longer for older workers. Courts consistently recognise that a 55-year-old professional faces a harder road to comparable employment than a 35-year-old. If you received a package that doesn't reflect your age and tenure, it is especially worth getting it reviewed by an employment lawyer.

EI duration is generally longer in regions with higher unemployment, which tends to benefit older workers who need more time to find suitable work. The long-tenured worker measure (20 extra weeks until October 2026) is particularly relevant to workers over 50 with strong employment histories.

Employment Ontario (ontario.ca/employment-ontario) and WorkBC both offer targeted programmes for workers over 45. In Alberta, Alberta Supports centres provide mature worker programming.

Federal 50PLUS Employment Program: Some federally funded community organisations run dedicated programmes for workers aged 50 and over — covering job search, skills upgrading, and employer connections. Check with your local Service Canada office for what is available in your area.

Consider your CPP and OAS timing. If you're within a few years of eligibility, now is a good time to review your options with a financial planner. Taking CPP early (from 60) reduces the monthly amount; delaying (to 70) increases it. There is no universally right answer — it depends on your health, savings, and when you expect to need the income.