Developing an Adjustment Program

A committee of employer and employee representatives develops an adjustment program to either:

  • eliminate the need for a group termination, or
  • minimize the impact of a group termination on affected employees and help them find other employment.

The committee must hold its first meeting within two weeks of the date the notice is given and has up to 16 weeks, or the length of the notice period, to develop an adjustment program.

If the committee cannot agree on an adjustment program, either party may ask the Minister of Labour to appoint an arbitrator to settle outstanding issues: such applications cannot be made until at least six weeks after the notice of termination is issued. The arbitrator can assist these parties in developing an adjustment program, but their authority is restricted to matters normally subject to collective agreement provisions on the termination of employment. They cannot review the employer’s decision to terminate, nor can they delay the termination.

Under certain conditions, the Minister of Labour can waive an employer’s requirement to establish such a committee. Refer to Sections 228 and 229, Part III of the Canada Labour Code or contact the closest Labour Program office.

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Date Modified:
2012-02-15