Layoff size
~310 jobs projected across GTA agencies (68% of surveyed organizations anticipating cuts by 2028)
Layoff guide · April 2026
9 min readOntario settlement agencies layoffs 2026: what to do if you are affected
Last updated:
Federal funding cuts to Immigration, Refugees and Citizenship Canada are forcing dozens of Ontario settlement agencies to reduce staff, cut programs, and in some cases shut down services entirely. A sector-wide survey found that 68 percent of GTA newcomer agencies anticipate layoffs by 2028, with a collective loss of roughly 310 jobs already projected. This guide covers your employment rights, severance entitlements, and practical next steps if you work at - or rely on - an affected Ontario settlement agency.
OngoingAnnounced: Apr 10, 2026
Updated as new information becomes available
Announced
Ongoing from 2024; accelerating April 2026
Affected groups
Language trainers, settlement counsellors, employment support staff, program coordinators
Reason cited
Federal IRCC budget reduction of $317.3 million over three years; government-wide 15% savings directive
Latest updates
April 10, 2026
Canadian Immigrant reports on mounting Ontario agency layoffs tied to federal cuts
Canadian Immigrant covers the cumulative impact of federal funding reductions on Ontario-based settlement agencies, including program closures, reduced hours, and active layoffs across multiple organizations. The report notes that job losses and service disruptions are accelerating as the 2026 fiscal year begins.
Source: Canadian Immigrant
April 1, 2026
IRCC eligibility rules take effect, reducing demand and agency revenue
New IRCC rules capping settlement service access for economic class permanent residents at six years came into force. Agencies that depended on steady client volumes - and the per-client funding that follows - are now projecting lower intake and smaller federal allocations.
Source: IRCC / Canada.ca
March 10, 2026
IRCC formally announces settlement service eligibility changes
Immigration, Refugees and Citizenship Canada published official notice of time-limited access to federally funded settlement services for economic class permanent residents, effective April 1, 2026. The change applies retroactively and immediately cuts off access for economic PRs who have held that status for more than six years.
Source: IRCC / Canada.ca
February 25, 2026
United Way - OCASI - City of Toronto survey reveals sector-wide crisis
A survey of 48 GTA newcomer service agencies found that 44 percent expect program closures and 56 percent expect program disruptions. The survey, released by the United Way Greater Toronto, OCASI, and the City of Toronto, also flagged that 68 percent of agencies anticipate layoffs, projecting a collective loss of approximately 310 jobs.
Source: Canadian Press / National Observer / Global News
2024 (fiscal year start)
IRCC three-year, $317.3 million budget reduction begins
The federal government began implementing a three-year reduction to the overall IRCC budget, with all federal departments directed to identify 15 percent savings over the same period. Settlement agencies in Ontario began adjusting staffing and program delivery in response.
Source: United Way Greater Toronto report / CP24
As of April 10, 2026, layoffs across Ontario settlement agencies are ongoing and unevenly distributed. Individual agencies have not all issued public statements; the precise number of positions already eliminated sector-wide remains unconfirmed.
What is still unclear
- The exact number of layoffs already completed at individual Ontario agencies as of April 2026 has not been publicly confirmed by most organizations.
- It is not yet clear which specific agencies have issued formal termination notices versus reduced hours or paused hiring.
- The total federal funding reduction specific to Ontario - as distinct from the national $317.3 million IRCC cut - has not been disaggregated in public reporting.
- Whether the provincial government of Ontario will introduce bridging funds to offset federal cuts has not been confirmed.
Ontario settlement agencies are in the middle of a funding-driven workforce reduction that has been building since 2024 and is now accelerating under new IRCC eligibility rules and a multi-year federal budget cut. If you work at one of these agencies, the risk of layoff or reduced hours is real and sector-wide - not isolated to one employer. Your first priority is to confirm your employment status in writing, understand your Ontario ESA entitlements, and begin networking within the broader social services and newcomer support sector, where transferable skills remain in demand. Do not sign any severance release without reading it carefully and, if possible, consulting an employment lawyer first.
Yotru AI
Layoff guidance summary
Stabilize first
A layoff from a settlement agency - where the work is mission-driven and the community relationships are deep - can feel both professionally and personally destabilizing. Before you update your resume or send a single application, take stock of your immediate situation so you are making decisions from solid ground rather than panic.
- Check your employment contract and any offer letter for notice periods, severance clauses, or termination language.
- Confirm when your group benefits (health, dental, vision) end - this may be your termination date, not your last day in the office.
- Save copies of performance reviews, reference letters, and key project documentation to personal storage before system access is revoked.
- Download your pay stubs and T4s from the employer portal while you still have access.
- Collect personal contact details for trusted colleagues and clients who may serve as references later.
Important context
Layoffs across Ontario settlement agencies are not happening uniformly. Some agencies have issued formal notices; others have reduced hours, frozen hiring, or eliminated contracts for part-time and term employees. Your specific rights depend on your agency, your employment category (full-time, part-time, term, contract), and your years of service. Verify your individual situation before assuming any sector-wide figure applies to you.
What happened at Ontario settlement agencies
A clear read on the situation helps you plan next steps with less guesswork.
What is happening
A three-year, $317.3 million reduction to the overall IRCC budget - which began in the 2024 fiscal year - has progressively cut the funding that flows from Ottawa to Ontario settlement agencies. Separately, all federal departments were directed to find 15 percent in savings over three years, compounding pressure on immigration and settlement budgets. A February 2026 survey of 48 GTA newcomer service agencies found that 44 percent expect program closures and 56 percent expect program disruptions. The situation intensified on April 1, 2026, when new IRCC rules capped settlement service access for economic class permanent residents at six years, reducing the eligible client pool and the per-client funding allocations that agencies rely on. As of the date of this profile, layoffs across Ontario are ongoing.
Who is affected
Staff most at risk are frontline settlement workers: language instructors (particularly for higher-level LINC and PBLA programs), employment counsellors, settlement counsellors, and program coordinators. Part-time and term employees have historically been the first to lose positions in prior funding cut cycles affecting this sector. Organizations across the Greater Toronto Area - including agencies in Mississauga, Scarborough, Brampton, and other high-newcomer-population communities - are all reporting strain. Contractors and project-funded roles attached to now-closed programs are also vulnerable. Refugees and refugee-serving roles are not automatically protected; OCASI and sector advocates have flagged that cuts are landing across the board.
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Your first 72 hours
- 1Get your layoff or termination confirmed in writing - ask for a formal letter stating your last day, severance amount, and benefit end date.
- 2Read the severance or separation agreement before signing anything - you are not required to sign immediately and signing waives future legal claims.
- 3Confirm exactly when your health and dental benefits end so you can plan prescription refills and any pending appointments.
- 4Apply for Employment Insurance (EI) on Service Canada as soon as possible - do not wait for your Record of Employment (ROE); apply and the ROE can follow.
- 5Preserve work evidence - save performance reviews, commendation emails, and client outcome data to personal storage while you still have system access.
- 6Collect contact details for colleagues and clients who can serve as professional references before access is removed.
- 7Update your LinkedIn profile and resume while your achievements are fresh - note program outcomes, client volumes, and language skills used.
- 8Reach out to your professional network discreetly - peers at OCASI member agencies, settlement sector job boards, and Employment Ontario portals are good starting points.
- 9Contact a community legal clinic or employment lawyer if your severance offer seems low or the timeline feels rushed.
Most Ontario settlement agencies are non-profit organizations and do not issue equity or stock options. If your agency has a defined-benefit or group RRSP pension plan, confirm vesting status and whether employer contributions are forfeited on termination; plan terms vary by organization.
OFFICIAL
These staffing changes are necessary to align with reduced immigration levels and permanent funding.
OFFICIAL
Starting April 1, 2026, economic class permanent residents can only access newcomer services for a limited time.
Verify yourself
- Search LinkedIn for staff at your agency or peer agencies and filter by 'Open to Work' - a spike is a signal that layoffs are underway.
- Check the OCASI website (ocasi.org) and United Way Greater Toronto for updated sector reports and agency-level announcements.
- Search the Ontario Ministry of Labour WARN-equivalent notice database for mass termination notices filed under the Ontario Employment Standards Act (employers with 50 or more employees terminating 10 or more must give group notice).
- Monitor your agency's own website, social media, and email communications for program closure or restructuring announcements.
Get your resume ready while details are fresh
Settlement sector experience - language instruction, case management, community outreach, cross-cultural communication - is genuinely transferable, but hiring managers outside the sector need to see it translated into clear outcomes. The best time to capture that is now, before the day-to-day of your job fades. Upload your resume to Yotru for structured feedback while the work is still top of mind.
- ATS keyword alignment for social services, non-profit, and public sector roles
- Outcome-first bullet rewrites that quantify client loads, program reach, and language levels taught
- Formatting checks for Canadian non-profit and government hiring portals
- Gap and skill identification for adjacent roles in workforce development, adult education, and community health
Rights, severance, and timelines
General guidance only. Based on typical cases and not independently verified. Your situation may differ.
Severance package
Ontario settlement agencies are provincially incorporated non-profits and most employees are covered by the Ontario Employment Standards Act (ESA). Minimum ESA severance for employees with five or more years of service at agencies with a payroll of $2.5 million or more is one week per year of service, up to 26 weeks - on top of termination notice or pay in lieu. Common law entitlements (if your contract does not cap them) can be significantly higher.
Negotiation
You can negotiate severance even at a non-profit. Ask for extended benefit coverage, outplacement support, and a neutral or positive reference as part of the package. If your letter includes a release of all claims, consider having an employment lawyer review it before signing - many offer a free or flat-fee initial review.
Typical package
- ESA minimum: 1 week termination notice per year of service (up to 8 weeks) plus ESA severance if eligible
- Extended benefits: negotiate to keep health and dental active for 1-3 months past termination
- Reference letter: request a written, dated, signed reference as a package condition
- Outplacement or training funds: some agencies include a modest allowance for retraining or job search support
Key deadlines
- Do not sign any severance release under time pressure - you have a reasonable period to review, typically several weeks
- Apply for EI within 4 weeks of your last day to avoid delays in benefit payments
- File an ESA complaint with the Ontario Ministry of Labour within 2 years of the alleged violation if you believe your minimum entitlements were not met
- If pursuing a wrongful dismissal claim in court, limitation periods in Ontario are generally 2 years from the date of termination
Employee rights by region
Regional rules differ. Use these as starting points and verify against official sources for your situation.
Ontario - ESA minimums
- Termination notice: 1 week per year of service, up to 8 weeks (employers with payroll over $2.5M and 5+ years service also owe ESA severance pay)
- Mass termination: if 50+ employees are cut within a 4-week period, the employer must give the Ministry of Labour 8 weeks notice (or more, depending on size)
- Benefit continuation: employer must maintain benefits during statutory notice period
- Common law notice: courts may award significantly more than ESA minimums for longer-tenured employees - consult a lawyer
Federal funding context
- Settlement agencies receive federal grants, not direct employment contracts with Ottawa - your employer is the agency, not the federal government
- The Canada Labour Code does not apply to most settlement agency employees (they are provincially regulated under Ontario law)
- If your agency receives federal funding through a contribution agreement, check whether any severance or notice obligations were built into the agreement
- Contact the Ontario Ministry of Labour, Immigration, Training and Skills Development if you have questions about whether your employer met mass termination notice requirements
If you have not been laid off yet
- Document your current job scope, caseload numbers, and program outcomes now - restructuring can blur role definitions quickly.
- Identify your new reporting structure and whether your position has changed materially; a significant change to duties can constitute constructive dismissal in Ontario.
- Protect your professional relationships - colleagues who are let go may become references, co-applicants on future grants, or future employers.
- Avoid visible panic or badmouthing the organization on public platforms; the settlement sector in Ontario is small and connected.
- Assess your own runway honestly - if your program's funding ends in the next cycle, begin a quiet job search before a formal announcement.
- Update your resume and LinkedIn now, while your current achievements are fresh and you have time rather than urgency.
Skills built in Ontario settlement agencies - multilingual client intake, needs assessment, language instruction, employment coaching, community outreach, and grant reporting - are directly transferable to roles in workforce development organizations, adult education, public libraries, community health centres, municipal governments, and federally funded employment service providers. Reframe outcomes in numbers (clients served, referrals made, language levels advanced) and your resume will resonate well outside the sector.
How does this compare?
Compared to industry norms
Funding-driven non-profit layoffs differ from corporate restructuring: there is typically no severance pool beyond ESA minimums unless the organization has a formal policy, and affected employees often face a compressed local job market because peer agencies are cutting at the same time. The settlement sector in Ontario has experienced two prior waves of significant cuts - after the 2012-13 IRCC funding formula change and again in 2015-16 - and sector recovery in both cases took two to four years. The current cut, tied to a $317.3 million IRCC reduction plus a 15 percent government-wide savings target, is larger in dollar terms than either prior episode.
Compared to past layoffs
The OCASI-documented 2015-16 funding cut cycle saw more than half of affected Ontario agencies lay off employees, with part-time staff disproportionately impacted and caseloads rising sharply for those who remained. The current situation tracks a similar pattern but at a broader scale: 68 percent of surveyed GTA agencies now anticipate layoffs versus a smaller cohort in 2015-16. A notable difference is the simultaneous change to IRCC eligibility rules, which compresses both client demand and per-client revenue at the same moment that the base budget is shrinking - a double pressure that prior cycles did not include.
Common Questions
Answers to the most common questions about the Ontario Settlement Agencies layoffs and what to do next.
Are Ontario settlement agency layoffs confirmed for 2026?
The broader funding pressure is confirmed by a United Way Greater Toronto, OCASI, and City of Toronto survey released in February 2026. Individual agency layoffs are occurring and ongoing but are not all publicly announced. Check directly with your employer and monitor OCASI communications for updates specific to your organization.
How much severance will I get from an Ontario settlement agency?
At minimum, Ontario ESA entitles you to one week of termination notice per year of service (up to 8 weeks), plus ESA severance pay if you have 5 or more years of service and your employer has a payroll of $2.5 million or more. Common law entitlements can be higher if your contract does not cap them. Consult an employment lawyer before signing any release to ensure the offer meets or exceeds your legal minimum.
Can I negotiate severance with a non-profit settlement agency?
Yes. Non-profit status does not remove your right to negotiate. Common negotiating points include extended benefit coverage, a written reference letter, outplacement support, and additional weeks of pay. An employment lawyer can help you assess whether the package offered is reasonable given your tenure and role.
Will I qualify for Employment Insurance (EI) if my settlement agency lays me off?
Most settlement agency employees in Ontario qualify for regular EI benefits if they have accumulated the required insurable hours (typically 420 to 700 hours depending on local unemployment rates). Apply through Service Canada as soon as your last day is known - do not wait for your Record of Employment to arrive before applying.
Why are Ontario settlement agencies cutting staff in 2026?
The cuts are linked to a three-year, $317.3 million reduction to the overall IRCC budget that began in 2024, combined with a government-wide directive to find 15 percent in savings. New IRCC eligibility rules effective April 1, 2026 also reduce the pool of clients agencies can serve and the per-client funding they receive, compressing revenues further.
Which Ontario settlement agency departments are most affected by layoffs?
Language training staff - particularly higher-level LINC and PBLA instructors - are among the hardest hit, along with employment counsellors and program coordinators. Part-time and term employees have historically faced the earliest and deepest cuts in prior Ontario settlement funding cycles. Specific departments vary by agency.
Do Ontario settlement agency employees get notice before being laid off?
Under Ontario ESA, employers must provide written notice or pay in lieu based on years of service (1 week per year, up to 8 weeks). If 50 or more employees are terminated within 4 weeks, the employer must also notify the Ontario Ministry of Labour. Check your contract for any additional notice provisions, and consult an employment lawyer if notice seems short.
What jobs can I apply for after working at a settlement agency in Ontario?
Settlement sector experience transfers well to roles in Employment Ontario service providers, adult education, community health centres, public libraries, workforce development organizations, municipal newcomer offices, and federally funded employment programs. Quantify your outcomes (clients served, referrals made, language levels taught) to make your resume competitive outside the sector.
Editorial standards
Yotru builds layoff intelligence profiles from verified public sources including government notices, sector surveys, and established news outlets. Confirmed data is clearly distinguished from reported or projected data throughout this profile. Where information is uncertain or unconfirmed, we say so directly. This profile will be updated as additional verified information becomes available.
Methodology
Canadian Immigrant (April 2026) · Canadian Press / National Observer (February 25, 2026) · Global News / CP24 / Lethbridge Herald (February 25, 2026) · United Way Greater Toronto - OCASI - City of Toronto sector survey (February 2026) · IRCC / Canada.ca official eligibility notice (March 10, 2026) · OCASI Frontline report on prior funding cuts (ocasi.org) · PSAC affected notice data (January 2026)
Unconfirmed content
The total number of layoffs already completed at individual Ontario settlement agencies as of April 2026 is not publicly confirmed. The Canadian Immigrant article cited as the primary source for this profile had not been independently retrieved in full; summary details are drawn from corroborating reporting by the Canadian Press, Global News, National Observer, CP24, and OCASI. Specific agency-by-agency layoff counts, termination dates, and severance terms are not publicly available and should be verified directly with the relevant employer. Any reference to individual organizations in public reporting should be treated as indicative of sector trends rather than confirmed facts about a specific employer.
Disclaimer
This profile is for general informational purposes only and does not constitute legal, immigration, or financial advice. Layoff figures and funding details are approximate and based on publicly available reports as of the date shown. Individual circumstances - including your employment contract, agency size, years of service, and union status - will affect your specific entitlements. Consult a licensed Ontario employment lawyer or a qualified settlement sector professional for advice tailored to your situation. Nothing in this guide should be read as implying misconduct by any organization mentioned.
Profile period
April 2026 · Updated Apr 10, 2026
Tags
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