Employment Law

Hudson’s Bay Company laying off hundreds of workers

The Hudson’s Bay Company (HBC) has announced over 600 employees will be laid off due too in part the continuing shutdowns of stores across Canada. What will former employees be entitled to as the company is facing financial difficulties?

Lior Samfiru, a Toronto employment lawyer and co-founding partner at Samfiru Tumarkin LLP spoke with the Canadian Press on what former HBC employees can expect.

“employees have received a so-called working notice, which means they are expected to work until the termination date,” Samfiru notes.

Samfiru goes on to explain that notice when stores aren’t open and employees can’t work is “absurd,” and HBC should be providing payment in lieu of notice. He suggests that terminated workers are not being offered proper severance.

“Workers, both part-time and full-time, have worked for the retailer for between 10 and 30 years, predominantly in sales and middle management at stores in the Toronto area, Ottawa, Calgary, and Vancouver, “Samfiru explains, “some workers have mentioned specifically a “national restructuring.”

Severance pay for HBC employees

Employees of Hudson’s Bay Company that are terminated without cause in Ontario, Alberta or BC are owed full severance pay under common law.

Severance pay is NOT just one week per year of service with a company. It can be as much as 24 months’ pay. The entire amount is based on a number of factors, including age, length of service, position, salary, benefits, and ability to find a new job.

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Based on the termination letters from the dozens of HBC workers who have contacted Samfiru Tumarkin LLP, it appears that many of the employees affected by this layoff have been wrongfully dismissed. In other words, they have not been offered the severance package that they are legally owed. Those individuals should contact our team immediately to determine how to obtain a their full termination pay.

Severance pay deadlines

Termination letters handed out to 600 Hudson’s Bay Company employees last week contained a 7-day deadline on the severance offer. In many cases, the letter suggests that if the individual does not accept the severance offer before the deadline passes, their amount of severance they are owed will be reduced even further.

You do NOT have to abide by a severance pay deadline! A non-unionized employee in Canada has 2 years from the moment of termination to file a claim to obtain their full severance pay. Deadlines imposed by the employer are meaningless. They are an attempt to pressure you into signing away your right to receive potentially tens of thousands of dollars more than what you have been offered.

An employer does not have the legal right to force you to accept a termination package on the spot before being permitted to leave the meeting. You are allowed to contact an employment lawyer to have the offer reviewed to ensure that your rights have not been violated.

Find out what you are owed

Before you accept the severance offer from HBC, talk to our team by filling out an online form below, calling 1-855-821-5900, or using the Severance Pay Calculator to learn more about what you are actually entitled to during the COVID-19 pandemic.

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