Stellantis Brampton Plant Sale: Severance, Pension and EI Basics for Workers

What we know as of November 13, 2026

• On November 9, 2026, Stellantis announced it had signed an Asset Purchase Agreement under which Roshel will acquire the Brampton Assembly Plant and its equipment. The price was not disclosed. Stellantis release, read November 13, 2026.
• Stellantis said closing is expected by the end of 2026, subject to closing conditions, including applicable government and regulatory requirements. Stellantis release, read November 13, 2026.
• Stellantis said it is prepared to engage with Unifor to negotiate a settlement for union-represented employees. Stellantis release, read November 13, 2026.
• A reported more than 2,200 Unifor Local 1285 members at Brampton Assembly have been on layoff since the plant was idled in December 2023. Unifor statement, read November 13, 2026; Canadian Press timeline, read November 13, 2026.
• Global News also reported the agreement and expected closing, with no settlement terms announced. Global News, read November 13, 2026.

No settlement, severance, buyout, retirement-incentive or pension terms had been published as of November 13, 2026. Whether or when employment formally ends, and what happens to recall rights, are not known. This page will be updated when the company or the union publishes them. The union and the collective agreement, not this page, are the authority for members.

General Ontario notice and severance rules

These are general Employment Standards Act (ESA) rules, not a finding about this employer or anyone's entitlement. A collective agreement can provide more than ESA minimums. Union members should ask their union which rules apply.

Under Ontario's termination guide, eligible employees with at least three months of continuous employment generally receive written notice, termination pay instead, or a combination. Individual notice ranges from one to eight weeks, based on employment length.

Special mass-termination rules can apply when 50 or more employees are terminated at an establishment within four weeks. Where those rules apply, notice is eight weeks for 50–199 employees, 12 weeks for 200–499, and 16 weeks for 500 or more. Exceptions apply.

ESA severance pay is separate. Subject to exemptions, eligibility requires severed employment and at least five years with the employer, plus either:

• An employer global payroll of at least $2.5 million; or
• Employment severed for at least 50 employees within six months because all or part of the business permanently closed.

The amount is one week of regular wages per completed year, plus completed months divided by 12 for a partial year, capped at 26 weeks. The Ontario severance calculator works out ESA notice and severance pay weeks. It does not determine collective-agreement rights.

Temporary layoffs and recall rights

The Ontario guide describes a temporary layoff as reduced or stopped work without ending employment. Its basic limit is 13 weeks within 20 consecutive weeks. Longer layoffs can remain temporary under specified conditions, including union recall agreements or approved extended layoffs. A layoff beyond the applicable temporary-layoff limits counts as termination, generally triggering termination pay.

The guide says an employee with recall rights who is entitled to termination pay because of a layoff of 35 weeks or more can keep those rights and not receive termination pay or eligible severance pay at that time, or give up recall rights and receive the payments. Anyone entitled to both must make the same choice for both. Ask the union to confirm the rule and any trust arrangement for money awaiting a choice.

EI basics and temporary measures

EI eligibility depends on insurable work, the reason work ended, enough qualifying hours, and being available for and seeking work. Service Canada decides each claim. For most people, the basic rate is 55% of average insurable weekly earnings.

For 2026, the weekly maximum is $729, with maximum yearly insurable earnings of $68,900.

Canada.ca lists these temporary measures:

• Waiting period: waived for new claims starting March 30, 2025–October 9, 2027. Serving it may be advantageous with a Supplemental Unemployment Benefit top-up.
• Separation earnings: not deducted from benefits if the claim or allocation starts March 30, 2025–October 9, 2027. This includes severance and pay in lieu of notice.
• Long-tenured workers: eligible claims starting June 15, 2025–June 12, 2027 can receive 20 extra weeks, up to 65 weeks total. Eligibility includes at least one week of regular benefits, fewer than 36 weeks of regular or fishing benefits in the prior three years, and at least 30% of maximum annual EI premiums in seven of the ten years before the claim year.

Service Canada can confirm whether these measures apply to your claim.

Severance and tax

CRA treats a retiring allowance as taxable income. Tax is normally withheld from cash paid to you; CPP contributions and EI premiums are not withheld from a retiring allowance. Pay in lieu of notice is employment income and has different treatment.

Under CRA's RRSP transfer rules, an eligible portion linked to service before 1996 can transfer to your own RRSP without using ordinary contribution room. A non-eligible portion needs available RRSP deduction room. Qualifying direct transfers avoid withholding on the transferred amount.

Pension options when employment ends

For a member of an Ontario-registered pension plan whose employment ends, the administrator provides a statement of benefits, options and deadlines. Usual choices include leaving benefits in the plan for a deferred pension, or transferring the commuted value where permitted. Eligibility and plan rules matter.

A commuted value is the present lump-sum value of future pension payments. Transfers to a locked-in account are generally reserved for retirement income. The lump-sum-or-monthly-pension guide explains the general decision. Ask the plan administrator or union for your plan's terms and the deadlines on your statement.

Questions to ask before you sign anything

• Union: Which agreement provisions and ESA rules apply to me?
• Union: What would signing change about my recall rights?
• HR: What is my employment status, and how is each payment classified?
• Pension administrator: What are my options and decision deadlines?
• Service Canada: How do my claim dates, work history and separation payments affect EI?

FAQ sources: Ontario termination and recall rules, severance pay, ESA minimums, EI measures, CRA payment types, RRSP transfers and FSRA pension options.

General information only, not legal, tax or financial advice.