As U.S. President Donald Trump prepares to implement a 25% tariff on all steel and aluminum imports, Canadian workers are already facing layoffs and job changes tied to economic uncertainty, according to an employment lawyer
Lior Samfiru, co-founder of Samfiru Tumarkin LLP, said his firm has heard from employees who have been told their jobs will be impacted or have already been dismissed with minimal compensation.
“A tariff doesn’t give your boss the right to cut your pay, change your job, or send you home without income,” said Samfiru. “Employers don’t get a ‘hard times’ exemption from the law—if they try to use tariffs, or any economic hardship, as an excuse to dodge their obligations, they could be on the hook for major compensation.”
The proposed tariffs, which include previously delayed measures against Canada set to take effect as early as March 1, have raised concerns in sectors that rely on steel and aluminum. While businesses may face financial challenges, Samfiru said that does not alter their legal responsibilities under Canadian employment law.
Workers remain protected against temporary layoffs without consent, which can be treated as terminations requiring severance, he said. Significant pay cuts, reduced hours, or changes in job duties could also amount to constructive dismissal. Employers must still provide full severance, which can total up to 24 months’ pay, depending on the circumstances.
“Too many employees assume their employer can do whatever they want in tough times,” he said. “That’s exactly how people end up accepting illegal changes and walking away from tens of thousands of dollars.”
