Hexo Corp. Layoffs and Severance Pay

Hexo Corp. is a Canadian cannabis producer based out of Gatineau, Quebec, and has production facilities in Quebec, Ontario, and New Brunswick.

The company was first introduced in 2013 under the name Hydropothecary to produce marijuana solely for the medical market. Once cannabis became legalized by the Canadian government in 2018, Hydropothecary was retained by Hexo Corp.

Hexo Corp employs a workforce of over 1000 employees in Canada and includes numerous subsidiaries, including: Zenabis, Newstrike Brands Ltd., and 48North Cannabis Corp. In April 2023, Tilray entered an agreement to acquire Hexo Corp.

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Latest layoffs at Hexo Corp.

• June 15, 2022: The cannabis producer laid off 142 employees at its Atholville plant in New Brunswick. The plant employed about 475 people just two years ago, but after many rounds of layoffs only 108 employees remain.
• April 21, 2022: The company is closing its Belleville facility and transitioning operations to other sites after facing financial losses. Hexo said approximately 230 workers will be affected by the closure.
• November 9, 2021: HEXO Corp. will be laying off 155 employees and closing three facilities in a move to streamline production.

Severance pay for Hexo employees

In Canada, non-unionized employees at Hexo Corp. 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

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 cannabis industry 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.

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 at Hexo, you are likely a provincially regulated employee. That means your severance package must consider:

• Your minimum severance pay as a provincially regulated employee, which is determined by each individual province.
• Your full severance pay according to our legal system (common law) which can be as much as 24 months’ pay.

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 Hexo 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.

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.