Alex Lucifero, CTV Morning Live discusses Shopify class action and severance

Interview Summary

Shopify is facing a class action lawsuit launched on behalf of former employees. After the latest round of layoffs, many former employees were offered seemingly standard severance packages. After accepting and signing termination papers, former employees were told there had been a mistake and they would alternatively receive far less.

Alex Lucifero, an Ottawa employment lawyer and Managing Partner at Samfiru Tumarkin LLP joined CTV Morning Live to answer these questions and more on employee rights.

Interview Notes

• Reason for revoking of severance payments: Shopify has argued they dramatically reduced severance packages as the initial offers were miscalculated. It is rare for employers to renege on termination offers for their former employees. Legally, this is considered a breach of contract.
• Shopify’s response to the lawsuit: Shopify has yet to provide a public comment after the lawsuit was filed against them on behalf of former employees. The lead plaintiff in the class action lawsuit stands to lose approximately $50,000 as a result of Shopify’s new severance offer.
• Rights of former Shopify employees: Recently terminated Shopify employees must receive their minimum severance entitlements despite the ongoing lawsuit. For employees to receive their full severance entitlements, as was initially promised, the lawsuit will have to be resolved. There have been a large number of layoffs in the technology sector, and many individuals are facing financial difficulties as a result.