Foodora Closure: Severance Pay for Canadian Workers

Foodora closing operations in Canada

Foodora is planning to close down its operations in Canada on May 11, 2020, according to reporting by The Canadian Press.

The food delivery app company says that its level of profitability in the country is not sustainable enough, and points to tough competition in the online food delivery market.

Workers were given notice of the shutdown today. Its current operations include 3,000 restaurants in 10 Canadian cities since it launched five years ago.

Severance Pay for Foodora Employees

Employment Lawyer Lior Samfiru says that It is quite possible that, at law, the Foodora drivers may be considered employees of the company.

“This means that they would be owed severance, now that they will no longer be working for Foodora and that could potentially mean a few months’ pay, per person,” said Samfiru, founding partner of Samfiru Tumarkin LLP.

“This is especially true now, when it will be harder for these individuals to replace the income they have lost from Foodora.”

“They may also be owed outstanding overtime, vacation pay, holiday pay and minimum wage.”