Employment Law

Gap Canada: Severance Packages

An assortment of clothes in a clothing store. Gap Canada employees are entitled to severance pay when they lose their job.

Gap Canada is an American multinational retail corporation that operates several popular clothing and accessories brands, including Gap, Banana Republic, Old Navy, Athleta, and Intermix. The company was founded in 1969 in San Francisco, California, by Donald and Doris Fisher.

In Canada, Gap operates over 70 physical stores across the country, with a majority located in Ontario, Alberta and B.C., and online shopping and shipping across the country. The clothing giant employs nearly 100,000 people globally, including at least hundreds of people in Canada.

Gap provides a range of clothing and accessories for men, women, and children including denim, T-shirts, sweaters, dresses, jackets, and more. The company also offers a variety of sizes and styles to fit different body types and preferences.

Over the years, Gap has grown to become one of the world’s largest clothing retailers, with a presence in more than 90 countries. However, the company has faced some challenges in recent years, including declining sales and increased competition from other retailers. Despite these challenges, Gap continues to be a popular destination for shoppers looking for trendy, affordable clothing and accessories.

Recent layoffs at Gap

  • April 2023: Hundreds of jobs at Gap are being cut as the apparel retailer continues its search for a new CEO.
  • September 2022: Gap slashes 500 corporate positions in the U.S. and ends its partnership with Kanye West.
  • August 2020: Over 225 stores were closed as a result of the COVID-19 pandemic.
  • January 2015: The company closes subsidiary Piperlime.
  • October 2011: Gap closes 189 stores, or 21 per cent of its locations.

Severance for Gap Canada employees

In Canada, employees at Gap Canada can get up to 24 months of severance pay when they are fired or laid off from their job. This includes individuals working full-time, part-time, and hourly in Ontario, Alberta, or B.C.

Severance is the compensation a non-unionized worker in Canada receives from their employer when they are fired without cause.

Even if you are fired for cause, it’s very likely that you are still entitled to full severance pay because employees often don’t meet the conditions necessary for this type of dismissal.

LEARN MORE
Severance for provincially regulated employees
Severance packages in mass layoffs
IBM Canada Layoffs and Severance Pay

Regardless of a company’s grasp on employment law, they are legally required to provide proper compensation following a termination.

This concept applies during challenging economic conditions, downsizing, the closure of a business, or major public health events such as the COVID-19 pandemic.


WATCH: Employment lawyer Lior Samfiru explains everything you need to know about severance pay on an episode of the Employment Law Show.


The employment lawyers at Samfiru Tumarkin LLP have represented numerous retail sector employees over the years in severance package negotiations.

We have successfully secured much larger amounts for individuals employed across a variety of positions, from entry level jobs to executives.

Lost your job at Gap?

Talk to Canada's most positively reviewed employment law firm today to get the advice you need and the compensation you deserve

Get Help Now

How to properly calculate severance pay

Employers often incorrectly calculate severance pay. There is a belief that severance pay is one week’s pay, two weeks’ pay, or a week for every year of service an employee has with the company.

For non-unionized employees, the main factors of termination or severance pay include age, length of service, position, bonuses, benefits, and the ability to find new work.

If you work for Gap Canada, you are a provincially regulated employee. That means your severance package must consider:

To figure out how much compensation you may be entitled to, use our firm’s Pocket Employment Lawyer.

ADDITIONAL RESOURCES
• Severance Pay in Ontario
• Alberta severance packages
• Understanding severance in B.C.
Layoffs in Canada

Don’t sign on the dotted line!

Do not accept any severance offer, termination papers, or exit agreement that Gap Canada may provide you with.

Once you sign back these documents, you eliminate your ability to negotiate a fair and proper severance package.

Generally speaking, if an employee does not receive the proper amount of severance pay when they lose their job, they may be considered to have been wrongfully dismissed. An employment lawyer at Samfiru Tumarkin LLP can analyze your situation and explain how much compensation you may be owed.

Talk to an employment lawyer

The experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals across the country. In addition to severance package negotiations, our team has experience securing solutions for the following employment matters:

Our lawyers in Ontario, Alberta, and B.C. stand ready to help you solve your workplace issues.

If you are a non-unionized employee who needs help with an employment issue, contact us or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.

Get What You're Owed

Our employment lawyers in Ontario, Alberta, and B.C. are ready to provide you with the advice you need and the compensation you deserve

Get Help Now

Disclaimer: The materials above are provided as general information about the rights of employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer.

Advice You Need. Compensation You Deserve.

Consult with Samfiru Tumarkin LLP. We are one of Canada's most experienced and trusted employment, labour and disability law firms. Take advantage of our years of experience and success in the courtroom and at the negotiating table.

Get help now