Metro Grocery Store Closing: Employee Rights – 580 CFRA

The Metro grocery store in Ottawa’s ByWard Market is closing on January 18th 2020.

While Metro claims that they are helping staff that have been affected by the Rideau Street closure, the employees say otherwise. Staff are telling Dahlia Kurtz on Newstalk 580 CFRA that the grocery giant is not finding new jobs for them. Metro argues that they are working with employees to find new placements at other Metro stores.

Alex Lucifero is an Ottawa employment lawyer and partner at Samfiru Tumarkin LLP, and host of the Employment Law Show. He spoke to Dahlia about severance pay for Metro staff and an employee’s rights when a company closes its doors.

Does an employer have a legal obligation to help an employee find new work when the business closes?

Alex explains that an employer does not have a legal obligation to find new work for an employee. There exists no legislation that forces an employer to find new jobs for displaced employees.

What may motivate an employer to find new work for an employee is the possibility of having to pay severance. When an employee is let go from their job, they are owed severance pay in Ontario.

If an employer wants to avoid paying a severance package to an employee, they must find them new work within the company. Otherwise, full severance pay based on numerous factors (for non-unionized employees) will owed.

Can an employer withhold vacation pay from an employee if they talk about how the company is handling their employment?

Alex says that Metro cannot withhold vacation pay (or any other form of compensation) from an employee who talks to the media about how the company is handling the store closure.

A company cannot withhold pay from an employee as a form of punishment, which is technically called a reprisal. A reprisal would be a breach of the Employment Standards Act.

Employment lawyer Lior Samfiru explains everything you need to know about Reprisals on the Employment Law Show.