Lufthansa InTouch Peterborough Closure: Severance Rights for Employees
Lufthansa InTouch announced that it would gradually close its customer-service centre in Peterborough, Ontario, by May 31, 2026, affecting hundreds of local employees.
The Peterborough location supported Lufthansa Group passengers through services that included reservations, ticketing, rebooking assistance, group sales and loyalty-program support. For customer-service agents, quality assurance employees, team leaders, managers and other staff affected by the closure, an important question is now front and centre:
Am I receiving the termination and severance package I am legally entitled to?
For non-union employees, the answer depends on several factors, including length of service, role, compensation, employment contract and whether federal employment law applies.
Is Lufthansa InTouch governed by Ontario or federal employment law?
Although the Peterborough centre was located in Ontario, employees supporting airline operations may be governed by the Canada Labour Code rather than Ontario’s Employment Standards Act.
Air transportation is a federally regulated industry in Canada. Businesses that are vital, essential or integral to airline operations may also fall under federal employment standards.
Because Lufthansa InTouch employees provided airline customer support, reservations and ticketing services, affected employees should obtain advice about whether their employment is federally regulated before relying on an Ontario severance calculation.
Our page on federally regulated employee severance rights explains how termination rights can differ for employees working in aviation, banking, telecommunications and other federally regulated sectors.
What rights may non-union Lufthansa InTouch employees have?
A permanent closure generally means that affected employees’ jobs are ending, rather than being temporarily suspended with an expectation of recall.
Non-union employees whose employment ends because of a closure may be entitled to compensation that includes:
notice of termination or pay instead of working notice;
statutory severance pay, where the employee qualifies;
outstanding wages and vacation pay;
continuation or compensation for certain benefits;
amounts connected to bonuses, commissions or other compensation, depending on the contract and applicable law; and
potentially additional compensation under common law, depending on the employee’s contract and circumstances.
Before signing a termination package or release, affected employees should have the offer reviewed by an employment lawyer for employees.
Federal termination pay and severance under the Canada Labour Code
Where the Canada Labour Code applies, employees with at least three consecutive months of employment are generally entitled to written notice of termination or pay instead of notice, unless an exception applies.
The minimum notice period generally increases with service. Employees with at least three years of service may be entitled to one week of notice for each completed year of employment, up to a statutory maximum of eight weeks.
Employees who have completed at least 12 consecutive months of continuous employment may also be entitled to statutory severance pay. Under federal standards, statutory severance is generally calculated as the greater of:
two days of regular wages for each completed year of employment; or
five days of regular wages.
These are statutory minimum standards. They do not necessarily determine the full value of a termination package for every non-union employee.
Employees can learn more in our guide to termination pay and severance for federally regulated employees.
Could the Lufthansa Peterborough closure be a group termination?
Where 50 or more employees at a single industrial establishment are terminated on the same date or within a four-week period, federal group-termination rules may apply.
If those rules apply, an employer is generally required to provide advance notice to the federal Labour Program and take additional steps relating to affected employees. Those steps can include providing employees with notice information, establishing a joint planning committee and delivering statements outlining wages, vacation pay, severance pay and other amounts arising from employment.
Because Lufthansa InTouch reportedly affected hundreds of Peterborough employees, affected staff may wish to ask:
When was my termination date effective?
Were employees terminated together or in stages?
Did I receive a statement outlining all amounts owed to me?
Does my package include my wages, vacation pay, benefits and applicable severance?
Was I asked to sign a release before obtaining independent legal advice?
Our resource on mass layoffs and group terminations explains why the number and timing of job losses can matter.
Should Lufthansa InTouch employees sign a severance offer immediately?
Employees are often presented with a termination letter, payment offer and release shortly after learning that their employment is ending.
A severance offer should be reviewed carefully before it is accepted. Once an employee signs a release, it may prevent them from pursuing additional compensation later.
Before signing, employees should retain copies of:
their employment agreement and any amendments;
termination letter and severance offer;
recent pay statements;
bonus, commission or incentive plans;
benefits information;
vacation records; and
communications about the closure, working notice or termination date.
An employee’s full compensation may involve more than base salary. Depending on the circumstances, bonus eligibility, commissions, health benefits, pension contributions or other compensation may matter during the notice period.
Learn more about what to do before signing a severance package.
What if an employee was given working notice before the closure?
Some employees may have continued working after being informed that the Peterborough location would close. Working notice can form part of an employer’s termination obligations, but the details matter.
Employees should consider whether, during any working-notice period:
their compensation remained unchanged;
their hours, duties or schedule changed significantly;
their benefits continued;
bonuses or commissions were addressed;
the employer provided required statutory information; and
the employee was offered additional compensation in exchange for signing a release.
An employee who worked through some or all of a closure period may still benefit from having their final termination package reviewed.
Does being a customer-service employee affect severance rights?
An employee’s job title does not eliminate their potential termination rights.
Customer-service representatives, reservation agents, quality assurance employees, supervisors, team leaders and managers may all have termination entitlements. The value of a potential claim depends on the employee’s circumstances, including:
age;
length of service;
position and responsibilities;
compensation;
employment contract language; and
availability of comparable work.
For Peterborough employees, the availability of comparable airline customer-service or multilingual reservation work in the local labour market may be relevant to a legal assessment.
What about unionized employees?
This article is directed primarily to non-union employees.
Employees covered by a collective agreement generally must pursue termination, layoff or recall issues through their union and the grievance process. Employees who are uncertain whether they are covered by a collective agreement should confirm their status before taking legal steps.
Next steps for non-union Lufthansa InTouch employees
Non-union employees affected by the Lufthansa InTouch Peterborough closure should consider taking the following steps:
Keep all termination and severance documents.
Confirm whether federal employment law applies to their role.
Do not sign a release before understanding its effect.
Review whether salary, vacation pay, benefits, bonuses or other compensation have been addressed.
Obtain legal advice about whether the termination package reflects their potential entitlements.
Losing a job because of a workplace closure can be stressful, especially where hundreds of employees are affected at the same time. Understanding whether a termination package is complete and appropriate can help an employee make informed decisions about their next steps.
Speak with an employment lawyer about a Lufthansa InTouch termination package
Were you employed at Lufthansa InTouch in Peterborough and affected by the closure?
Our firm advises non-union employees about termination packages, severance pay and workplace dismissals. An employment lawyer can review your documents, determine whether federal employment rules may apply and advise you about your options before you sign a release.
Contact our employment law team to request a consultation.
This article provides general information only and does not constitute legal advice. The application of federal or provincial employment law depends on the facts of each employment relationship.