Navigating layoffs and downsizing: HR support for Canadian small business
The latest U.S. tariffs are hitting Canadian businesses hard. With rising costs, supply chain disruptions, and shrinking margins, many small businesses are facing tough decisions—including layoffs and downsizing. Letting employees go is never easy, but handling it improperly can lead to costly mistakes, legal risks, and damage to your company’s reputation.
If your business is being forced to restructure, you don’t have to go through it alone. We provide expert HR support to help small businesses manage downsizing legally, ethically, and with as much care as possible.
Downsizing is difficult—doing it wrong makes it worse
Layoffs affect more than just the employees being let go. Mishandling terminations can create confusion, lower morale for remaining staff, and expose your business to potential legal claims. Here’s why having HR expertise during downsizing is critical:
- Avoid wrongful dismissal claims – Canadian employment laws vary by province, and terminations must be handled carefully to prevent costly legal action.
- Ensure proper severance and notice periods – Miscalculating severance pay or failing to follow required notice periods can lead to legal consequences.
- Protect your company’s reputation – How you handle layoffs affects how your business is perceived by employees, customers, and future job candidates.
- Maintain employee morale – Remaining staff need clear communication and support to stay productive and engaged.
- Handle terminations with professionalism and care – Even difficult decisions can be handled with empathy and fairness.
Facing downsizing? Let’s make sure it’s done right.
How we help with downsizing and layoffs
We provide practical, legally sound HR support to help small businesses navigate workforce reductions the right way. Our services include:
- Termination planning – Ensuring layoffs or terminations are done strategically and fairly while minimizing risk.
- Severance package guidance – Helping you determine fair and legally compliant severance pay.
- Executing termination paperwork – We'll create the paperwork for affected employees based on their employment contracts and your separation compensation philosophy.
- Compliance with provincial labor laws – Making sure terminations follow employment standards in Ontario, BC, and Alberta.
- Employee communication strategies – Preparing clear messaging to minimize confusion and maintain trust.
- Outplacement support – Providing departing employees with tools and guidance to transition to new opportunities.
- Managing remaining staff – Helping you maintain productivity and morale after a workforce reduction.
Why work with us?
- We know Canadian employment law – Every province has different rules. We make sure you follow them.
- Experience with small business downsizing – We specialize in HR solutions tailored for small businesses, not one-size-fits-all corporate policies.
- Practical, no-nonsense HR support – Straightforward advice and action plans without unnecessary complexity.
- Minimize risk and legal exposure – We help you avoid costly mistakes when handling layoffs and terminations.
- Support for both you and your employees – Downsizing is stressful for everyone involved. We help you handle it professionally and with care.
Laying off employees is never easy, but doing it the right way protects your business and helps those affected move forward. If downsizing is on the horizon, let’s make sure it’s handled properly – together.
Let’s begin talking about your downsizing plan.