Best Practices When Laying Off Staff

COVID-19 has had a profound impact on businesses and employment across Canada. Many organizations have been forced to reduce their workforce, cut hours, or close entirely — leaving countless employees temporarily or permanently out of work. If your business is facing the difficult reality of layoffs, here are a few best practices to help you navigate the process with care and professionalism.

1. Be Professional

Whenever possible, deliver the news in a face-to-face meeting. If that isn't feasible due to COVID-19 restrictions, opt for a video call through a platform like Zoom or FaceTime — it allows for a more personal, respectful conversation than a phone call or email. It's also generally advisable to have these conversations earlier in the week rather than on a Friday afternoon, giving the employee time to process the news and take next steps.

2. Be Prepared

Make sure you're fully up to date on all relevant Ministry of Labour and Employment Standards requirements, as you are legally obligated to meet the minimum standards as an employer. Consider consulting an employment lawyer to guide you through the process. Have a second person present during the meeting as a witness in case any issues arise. Take detailed notes throughout, update the employee's file afterward, and ensure you issue a Record of Employment (ROE) along with a written notice outlining their final pay.

3. Protect Your Organization

Once the meeting has concluded, ensure the employee no longer has access to company devices, files,social media accounts, or building keys. If appropriate, you may escort the employee to collect their personal belongings and walk them out. Taking these steps promptly helps protect your business and maintains a clear, respectful boundary.

4. Offer Helpful Resources

Wherever possible, provide the employee with resources to support their next steps. Outplacement services, for example, can assist recently laid-off employees with career coaching, resume editing, and interview preparation.

Visit Guhuza.com to learn more about the services available.

For additional guidance, watch Guhuza President Marc Belaiche, CPA, CA discuss this topic here.

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