The Canada Revenue Agency (CRA) recently notified 450 of its temporary employees that their contracts will not be extended beyond March.
This news comes as part of the agency’s ongoing effort to ensure sustainable operations while aligning with the Canadian government’s priorities. Etienne Biram, a spokesperson for CRA, confirmed that the agency routinely assesses its financial resources to maintain operations effectively.
This development follows an earlier announcement in November, when the CRA decided to limit certain hiring processes, implement a freeze on “non-essential” overtime, and phase out around 600 temporary positions.
Workforce Reductions Across Major Employers
The CRA’s staff cuts are part of a broader trend of job reductions happening across various sectors in 2025. Well-known companies such as MLSE, Disney, Autodesk, JPMorgan, Meta, Amazon, Chevron, Microsoft, and Canada Post have already made significant layoffs.
The impact of these layoffs on unionized versus non-unionized employees at CRA remains unclear, but it’s important for non-unionized workers to be aware of their employment rights when facing job loss.
Employee Rights After Job Loss
If you’re a non-unionized CRA employee, it’s crucial to understand your rights when you’re dismissed, especially in cases of downsizing, business restructuring, or company closures.
Under Canadian law, non-unionized employees are entitled to full severance pay under these circumstances, which applies to full-time, part-time, and hourly workers in Ontario, Alberta, and British Columbia. In some instances, independent contractors may also qualify for severance pay.
Key Facts About Severance Pay
| Factor | Details |
|---|---|
| Severance Duration | Can be up to 24 months’ pay, depending on various factors |
| Compensation Included | Severance pay may cover bonuses, commissions, and more |
| Legal Timeframe | You can claim severance up to two years after termination |
| Employer Deadlines | Any deadlines set by employers are not legally enforceable |
What to Do Before Signing Your Severance Package
Before you accept any severance package offered by your employer, it’s highly recommended to verify if the offer is fair. Samfiru Tumarkin LLP offers a free Severance Pay Calculator that can help determine your entitlement. This tool has assisted millions of Canadians in understanding their severance rights.
If the severance offer you’ve received seems inadequate, there’s a strong chance that you’ve been wrongfully dismissed. In such cases, it’s advisable to seek legal guidance from an experienced employment lawyer at Samfiru Tumarkin LLP.
If you’ve already signed a severance agreement, don’t worry. Reach out to a lawyer as soon as possible to discuss your options.
Lost Your Job? We Can Help
If you’ve been terminated from your job for any reason, it’s crucial to seek help. The Samfiru Tumarkin LLP employment law team has successfully represented tens of thousands of non-unionized workers across Ontario, Alberta, and British Columbia.
Our services include more than just severance package negotiation. We also provide legal assistance in areas such as:
- Terminations Without Cause
- Terminations for Cause
- Temporary Layoffs
- Performance Reviews
- Workplace Harassment
- Workplace Discrimination
- Maternity Leave
- Constructive Dismissals
- Employee Misclassification
- Short-term and Long-term Disability Claims
- Disability in the Workplace
- Forced Resignations
- Garden Leave
Facing job loss, particularly through downsizing or restructuring, can be challenging, but knowing your rights is key. Non-unionized CRA employees and workers from other organizations should stay informed about their severance entitlements and take advantage of tools like the Severance Pay Calculator to ensure they receive fair compensation. Always seek legal advice if you believe you’ve been wrongfully dismissed or if your severance offer doesn’t align with your rights.
FAQs
How much severance pay am I entitled to?
Your severance pay can be up to 24 months’ salary, based on your age, length of service, and position within the company. It may also include bonuses and other forms of compensation.
How do I know if my severance package is fair?
Use our free Severance Pay Calculator to assess whether your severance offer is reasonable.
Can I claim severance even if I signed an agreement?
Yes, you may still be entitled to additional severance even if you have already accepted an offer. Consult with an employment lawyer to explore your options.
What should I do if I feel I was wrongfully dismissed?
Contact an experienced lawyer at Samfiru Tumarkin LLP for a consultation, especially if you believe the severance offer is unfair or you were dismissed without proper cause.