Layoffs at Field Gate Organics, potential closure of business: sources

The experienced employment law team at Samfiru Tumarkin LLP is investigating reports of a mass layoff at Field Gate Organics (FGO) and a potential closure of the business.

Several employees have contacted our firm — claiming that the Ontario-based meat processing company has shut down and let staff go without working notice.

Our employment lawyers are following up with affected staff to better understand the situation.

Major layoffs continue

Reports of job cuts at FGO come amid a flurry of layoffs in 2023.

Several major North American companies, including BMO, Rogers, Ritual, Goldman Sachs, Suncor Energy, Meta, and LinkedIn, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

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Severance pay for FGO employees

In Ontario, non-unionized workers at Field Gate Organics are owed a full severance package from their employer when they lose their job.

This includes full-time, part-time, or hourly employees — as well as independent contractors.

Severance for non-unionized workers can be as much as 24 month’s pay. The amount of compensation you are entitled to is calculated using a variety of factors, including:

• Age
• Length of service
• Position at the company
• Ability to find new work

The experienced employment law team at Samfiru Tumarkin LLP has secured fair and complete termination packages for tens of thousands of non-unionized individuals in Ontario, Alberta, and B.C. since 2007.

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

Non-unionized workers in Canada are still entitled to appropriate severance pay if their employer decides to close the business permanently.

However, the situation changes if the company declares bankruptcy or creditor protection through the Company Creditor Arrangement Act (CCAA).

When employers file for bankruptcy protection through the CCAA, it’s very unlikely that staff will see much, if any, severance pay in the event that they are fired or let go.

The reason for this is that secured creditors, like banks, are at the front of the line for any funds generated through the bankruptcy and restructuring process, while unsecured creditors, such as employees, are at the back.

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