Can You Get Laid Off On Maternity Leave?

A Canadian maternity leave survey carried out by Moms at Work, Canada’s largest professional network for moms, shows that 15 percent of mothers (around 25,000 women a year) are dismissed, laid off or had contracts that weren’t renewed during pregnancy, leave or upon return. And when we posted on social media looking for moms who had experienced this, we were inundated with responses.

If you think it’s unlawful for an employer to lay off someone while on maternity leave or because they are a new parent, you're right. Unfortunately, many companies find loopholes.

"Restructuring" and other legal loopholes

“While it is illegal to fire someone for being on maternity leave or because they are pregnant, employers have found lots of ways around that,” said Allison Venditti, Founder at Moms at Work. “In Canada, an employer can lay off an employee at any time as long as they are compensated. What we are seeing is a lot of ‘restructuring’, ‘change of corporate priorities’, or ‘closing of departments’, and this allows companies to lay off employees on maternity leave without attributing it to them being on leave. If an employer does fire them explicitly for being on maternity leave or being pregnant, you can make a formal complaint to human rights, but that can take years and upfront costs for lawyers’ fees, etc. We are asking unemployed mothers who now have no income to do this, and that is a big ask.”

‘It Happened to me’: Stories of layoffs during leave

Christine of Oakville, Ontario, was on maternity leave from July 2022 to January 2024, and in November of 2023, she was contacted to say that she would not have a job upon her return because of restructuring. “Two other women on maternity leave were let go as well,” she said. “It was quite difficult for me to find a new job, and I started work again in September 2024 in a one-year contract position. It ends in December, and coincidentally, I am due with baby number two that same month. This company has said from early on they’d be interested in keeping me on permanently, but I’m doubtful that will happen if they find out I’ll be going on mat leave soon.”

Her experience with her last leave is causing worry about how this one will be received. “I am trying to keep this pregnancy a secret for as long as possible, with hopes I’ll get an offer. If I don’t, I will have no benefits during mat leave and will need to start from scratch after my leave again. It’s tough being a woman and mother in the business world.”

“I went on maternity leave with my second and knew going into it that there was a high likelihood of being let go,” said Toronto mom Sarah. Despite working for a non-profit and for a self-professed feminist leader, Sarah was one of seven people who were let go on maternity leave, always in the name of 'restructuring'.

The psychological toll on new moms

Being forced out of a job is stressful, especially for new parents. Not only do they have the immense responsibility of taking care of a newborn (and possibly other children), but the burden of having less income and stability can be taxing.

Christina Page is the founder and Clinical Director of Whole Family Psychotherapy, and said that in her practice of overseeing the care of hundreds of mom clients, she routinely provides counselling services to mothers who have experienced subtle and overt workplace discrimination based on their pregnancy or parenting status. “Almost always, this kind of discrimination is subtle and difficult to document or prove legally—performance evaluations suddenly become negative after announcing a pregnancy, being passed over for promotions that you were in line for, or facing layoffs that are deemed ‘restructuring’, and that disproportionately impacts mothers,” she explained.

The motherhood penalty

"This kind of discrimination leaves mothers questioning their self-worth and competence, and creates justified fear that their long-term career prospects will forever be impacted by their parental status. And they have cause to be concerned. The ‘motherhood penalty’ or ‘mom tax’ is well researched.”

The term "motherhood tax" has evolved to describe the financial and career disadvantages women face after becoming mothers. It is also known as “motherhood penalty,” a term coined by researchers Michelle Budig and Paula England, and explored in depth by journalist Ann Crittenden in her book The Price of Motherhood.

Life after layoff

Sarah said, despite knowing her layoff was coming, she was devastated. “It also had lingering effects, as anytime I was sick or took vacation or disagreed with my boss at a new role, I wondered if it would lead to termination,” she explained. “It took me a few years to not panic anytime I got invited into a one-on-one with my boss unexpectedly.”

When Michelle of Port Perry, Ontario, was on leave with her first and only child, the owner of her company passed away, and she was told four months before the end of her leave that her position was being terminated. “I had a feeling this might happen, so mentally I had some time to prepare for that, but it was still very stressful to find a new job,” she said.

"To do interviews with companies on maternity leave while trying to coordinate childcare [was hard]. My husband has been very supportive and luckily works for a company that’s understanding, and there were times when I dropped my son off at his dad’s work for an hour or two so that I could go do an interview. When my mom had days off, she would watch him as well, and we also had a neighbour who helped.”

Advice for women preparing to go on mat leave

Getting ready to go on mat leave? Here's some advice from women who've been let go.

“We created a free resource and worked with Hudson Sinclair Law Firm, who now provide free legal consults for anyone who has been laid off or terminated on mat leave or while pregnant,” Venditti said. “I encourage women to talk about it if you suspect that you might be laid off. Take lots of notes and screenshots, and record conversations. If you want to negotiate your severance package, these things can help.”

Sarah agreed. “Before you go on leave, send all your relevant files, documents, backups of performance reviews, etc., to yourself. While people think it won’t happen, you never know, and it’s better to be prepared.”

She added, “If you end up being let go during leave, do not sign anything until you talk to a lawyer. My lawyer negotiated almost double my original offer and had it effective the date I set for my original end of leave, which gave me peace of mind to continue my leave, it didn’t impact my EI, and it gave me space to find my next role.”

And finally, she recommended, “Talk to someone about your feelings and the impact it had on you, whether it’s a career coach to highlight your skills or a therapist to work through the emotions of it all.”

Policy gaps and the need for systemic change

Experts say that, while Canada has always been a country that is touted for its family benefits, like maternity leave, the laws themselves aren’t serving parents well. "There is a profound disconnect between maternity leave policies and many employers’ implementation and response to this," Page said. "We may have more progressive maternity leave policies than other countries that look great on paper, but these policies cover up deeper, more structural inequities. While the government provides income support for extended leaves, there's a critical gap in actual job protection and career advancement opportunities."

She continued, "Corporate culture hasn't caught up to policy. While the government provides financial support for maternity leave, corporations aren't required to provide meaningful accommodations for working parents beyond the bare minimum legally required. There's no mandate for flexible scheduling, backup childcare, or recognition that productivity might look different for parents navigating busy seasons of family life."

Another big problem is the use of non-disclosure agreements (NDAs), which Sarah and Venditti feel shouldn’t be used in these types of cases. "The government needs to make NDAs around this issue illegal," Sarah said. "I fought mine and got it, so I am not allowed to say anything negative about my former place of employment, but that clause does not apply to specific people, including my former boss."

Venditti agreed, "We are seeing a lot of non-disclosure agreements being used when they are settling cases, which I am in vehement disagreement with. Employers should not be using NDAs that were designed to protect proprietary information to silence women. Currently, there are almost no laws banning NDAs, and I think that they should be banned."