In New Brunswick, a mass layoff (group termination) legally occurs when an employer terminates more than 10 employees (meaning 11 or more) within a four-week period, provided they represent at least 25% of the employer’s workforce. The employer must provide at least 6 weeks of written notice to the provincial Minister and employees, regardless of the layoff’s size. However, individual employees are still entitled to their full common law severance, which can be up to 24 months of pay depending on their age and tenure.
When a large company closes its doors or heavily downsizes, the ripple effect on the local economy is devastating. Whether it is a call centre closing in Moncton, a mill shutting down in northern New Brunswick, or a corporate restructuring in Fredericton, group terminations are highly stressful for everyone involved. To prevent sudden economic shocks, the government imposes strict rules on companies that lay off large numbers of staff.
In this guide, we will outline exactly what constitutes a legal mass layoff in New Brunswick as of 2026. 🔍 We will explore the mandatory notice periods required by the Employment Standards Act, explain the difference between government minimums and your true common law entitlements, and detail how to ensure you receive a fair severance package when your entire department is let go.
Step-by-Step Process in New Brunswick
Group terminations follow different rules than single firings. The provincial government steps in to ensure that the workforce has time to prepare, transition, and find new employment.
Step 1: Determine if it Qualifies as a Group Termination
Under the New Brunswick Employment Standards Act, a “group termination of employment” officially occurs when an employer terminates the employment of more than 10 employees (meaning 11 or more) within any continuous four-week period, and those terminated employees represent at least 25% of the employer’s total workforce. 📅 If a company terminates 12 employees in a workforce of 100, the group termination rules do not trigger because they represent only 12% of the staff. Both thresholds (more than 10 employees and at least 25% of the workforce) must be met for the strict group rules to apply.
Step 2: Check for the Mandatory Minister’s Notice
If the dual thresholds of more than 10 employees and at least 25% of the workforce are met, the employer cannot simply hand out pink slips on a Friday afternoon. By law, they must provide written notice to the Minister responsible for Labour in New Brunswick at least six weeks before the terminations take effect. They must also provide this six-week notice directly to the affected employees or their union representatives. Unlike some other Canadian provinces that use a graduated notice scale based on the number of workers laid off, New Brunswick maintains a flat six-week notice period for all qualifying mass layoffs, regardless of whether 15 or 150 people are affected.
Step 3: Distinguish Between Statutory Notice and Common Law
This is where many employees lose out on thousands of dollars. The 6 weeks of notice is just the government minimum. Under Canadian common law, individual employees are almost always entitled to much more. If you worked at the company for 15 years, your common law severance entitlement is likely between 12 and 18 months of pay. Do not accept a mere 6 weeks of working notice as a complete severance package.
Step 4: Negotiate with Legal Counsel
When mass layoffs happen, employers often try to offer a “one-size-fits-all” severance package to everyone. ✍ This is highly advantageous for them, but bad for you. Every worker is unique. You should take your specific offer to a New Brunswick employment law firm to negotiate a package that reflects your specific age, years of service, and position.
How Much Does it Cost in New Brunswick?
When facing a sudden job loss, budgeting for legal advice is critical to ensure you do not sign away your rights for pennies on the dollar. 💵
- Individual Severance Review: An employment lawyer will typically charge a flat fee of $300 to $600 CAD to review your specific severance offer and calculate your true common law entitlements.
- Group Consultations: Sometimes, several laid-off co-workers will group together to hire one law firm. This can reduce individual upfront costs and provide stronger bargaining power against the corporation.
- Contingency Fee Negotiations: If the employer’s offer is low and you need the lawyer to negotiate, they usually charge a contingency fee of 25% to 35% on any additional money they secure above the original offer. You do not pay hourly fees out of pocket.
| Notice Type | Legal Requirement (NB) | Potential Payout |
|---|---|---|
| Statutory Notice (Group) | 6 weeks written notice | Minimum employment standard |
| Common Law Severance | Varies by age, tenure, role | Up to 24 months’ pay |
| Pay in Lieu of Notice | Employer choice (Time vs. Money) | Lump sum or salary continuation |
How Long Does the Process Take?
By law, any qualifying mass layoff in New Brunswick requires a flat 6-week notice period, with no graduated scale based on the number of terminated employees. 🕐 During this time, you may be asked to continue working (known as working notice). If the employer decides they want everyone to leave immediately, they must pay out those 6 weeks as a lump sum. Once you begin negotiating for your full common law severance with a lawyer, the back-and-forth process usually takes 2 to 4 months before reaching a final, signed settlement.
Frequently Asked Questions (FAQ)
Can an employer give working notice instead of a severance cheque?
Yes. Employers are legally allowed to provide “working notice,” where you continue to work for the designated notice period while receiving your regular pay. However, any common law entitlement beyond that period usually must be paid out in a severance package.
What happens if the company went bankrupt?
If the mass layoff is due to formal bankruptcy, getting your severance becomes extremely difficult. Employees become unsecured creditors and usually only recover a small fraction of what they are owed through the federal Wage Earner Protection Program (WEPP).
Do temporary layoffs trigger these rules?
No. A temporary layoff (where the employer intends to recall you within a specific timeframe) is different from a permanent termination. However, if a temporary layoff exceeds the legal time limits, it legally transforms into a permanent termination, triggering severance.
Should I sign the mass termination offer right away?
Never. Employers often impose arbitrary deadlines like “sign within 48 hours to get your bonus.” These deadlines are pressure tactics. You always have the legal right to consult an employment lawyer before signing a release of your rights.
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