Canadian Tire’s Corporate Layoffs: Your rights and next steps

On July 29, 2025, Canadian Tire confirmed that it had cut an undisclosed number of head-office positions as part of an ongoing “modernization and restructuring” program. The company stressed that no retail-store jobs were affected; the reductions were limited to corporate roles.

Although the retailer framed the move as a strategic realignment—not a response to financial distress—many employees are suddenly facing an uncertain job market. Below is a concise guide to understanding your severance entitlements and legal options under Ontario law.

1. Common law notice in Ontario

Factors courts consider when setting common-law notice include:

• Length of service

• Age

• Character of employment

• Availability of comparable positions in the marketplace

Because these factors are individualized, ESA “package” letters rarely match a person’s full common-law value.

2. Typical Pitfalls We See in Layoff Packages

1. “Temporary” layoff that is permanent in effect
   A corporate reorg often has no realistic recall date. Once a layoff is permanent, full severance is due.

2. Inadequate notice period
   Employers sometimes rely on the bare ESA minimum, overlooking common-law obligations.

3. Pressure to sign quickly
   Tight acceptance deadlines and “enhanced” payments can mask an offer worth significantly less than you could claim in court.

4. Misclassification of bonus, RRSP matching, or stock units
   Unless your contract clearly cuts them off, these forms of compensation typically form part of your severance quantum.

3. Wrongful Dismissal: Do You Have a Case?

You may have grounds to sue if:

• You received less compensation than the law would provide.

• You were singled out for reasons linked to protected grounds (age, disability, parental status, etc.).

• The company failed to accommodate a known medical or family need during the restructuring process.

Successful claims can recover the shortfall in pay, bonuses, benefits, and sometimes additional damages for bad-faith conduct.

4. Protecting Yourself: A Quick Checklist

1. Do not sign anything on the spot—ask for at least a week to review.

2. Gather your documents: offer letter, policies, bonus plans, performance reviews.

3. Estimate your market search time realistically; this impacts notice length.

4. Book a consultation with an employment lawyer before the deadline expires.

5. How Vanguard Law Can Help

Vanguard Law has assisted thousands of Ontario professionals in negotiating fair severance packages and litigating wrongful-dismissal claims. Our approach:

• Rapid Package Review – We provide an up-front assessment of the dollar gap between what you were offered and what courts typically award.

• Strategic Negotiation – Where possible, we settle discreetly and swiftly.

• Court-Ready Advocacy – If negotiation fails, we pursue litigation to secure every dollar you are owed.