Hudson’s Bay closing Yonge-Bloor store: Rights to severance

Historic Toronto location shuttering after decades in business

The Hudson’s Bay Company (HBC) location at Yonge and Bloor Streets in Toronto is closing permanently on May 31, 2022.

The iconic downtown Toronto store, which opened in 1974, is closing partly because of its presence near its Queen and Yonge Street location.

The company was involved in a legal battle with Ontario in 2021, after they stopped paying its rent due to the impact of the pandemic. HBC was ultimately made to pay 90% of its rent, and resume payments in November.

Is HBC closing the store at Yonge and Bloor Streets?

Yes, Hudson’s Bay Company is permanently closing the retail location found at the corner of Yonge and Bloor Streets. This will result in job losses for those employees linked to that location.

Termination agreements for Hudson’s Bay employees

HBC released a statement that suggested employees would receive severance packages.

“All eligible associates will receive appropriate employment separation packages and transfer opportunities will be explored where feasible.”

In Canada, non-unionized employees and senior executives at Hudson’s Bay are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance packages in mass layoffs
• Severance for provincially regulated employees
• Employment lawyer on worker rights in the event of a layoff

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

HBC severance packages may be inadequate

In 2020, Samfiru Tumarkin LLP discovered that the Hudson’s Bay Company was withholding a significant amount of severance pay from nearly 100 employees that the retail giant had let go in the early stages of the COVID-19 pandemic.

After the firm brought the issue to the public’s attention, HBC reversed its decision.

READ MORE
• Law firm launches lawsuit against Hudson’s Bay after worker hours cut
• HBC restores full severance after backlash, law firm involvement
• Layoffs in Canada (2022)

There is concern that the severance packages offered to Hudson’s Bay employees in Canada could fall short of what they should actually be. Employers often fail to provide the correct amount of severance when they lay off staff.

Use our free Severance Pay Calculator tool to find out how much compensation you might actually be owed. A wrongful dismissal occurs when your employer does not offer you the correct amount of severance pay.

Fired or let go? Contact us today

If you are fired by HBC, or are a non-unionized employee let go by another company, you should contact us before you accept any severance offer.

An employment lawyer at Samfiru Tumarkin LLP can review your offer and determine how much more you should receive. Our team has helped tens of thousands of individuals in Ontario, Alberta and British Columbia get the advice they need, and the compensation they deserve.