Lior Samfiru talks Shopify class action lawsuit on CityNews Ottawa

Interview Summary

A class action lawsuit has been filed against Shopify after the e-commerce company was found to have illegally slashed severance packages. In its latest round of layoffs, Shopify employees were initially offered what appeared to be adequate severance pay. After accepting, the recently terminated employees were informed that a mistake had been made, and they would be offered far less. Can employers renege on severance offers?

Lior Samfiru, an employment lawyer and national co-founding Partner at Samfiru Tumarkin LLP spoke to Rob Snow on CityNews Ottawa to discuss the suit the firm launched in detail.

Interview Notes

• Class action lawsuit claim: The suit alleges that after accepting severance offers, many employees across Canada were informed by Shopify that they were actually owed much less severance pay. Shopify has refused to abide by the original offers of severance and in so doing, has breached the terms of their contract.
• Process of a class action lawsuit: The first stage in a class action lawsuit aims to identify a group of people with a common issue. A court has to agree that the individuals should have their concerns addressed as a group in a certification. There are various litigation steps after certification.
• Lead plaintiff in class action suit: Iain Russell is the lead plaintiff in the class action lawsuit filed against Shopify. Russell was let go as a part of a mass layoff after 7 years of employment. Russell was offered an initial severance package by Shopify and accepted it and later was given a new severance offer. The new severance offer was approximately $50K less than the original offer.
• Employer obligations to severance: Employers are obligated to provide adequate severance to employees that are terminated without cause. Severance in Ontario is much more generous than many people believe. Severance is based on primarily a person’s age, length of employment, and position. Severance can range from 2 months to up to 24 months of pay.
• Qualifying for the class action: Any former Shopify employees who were informed their severance packages will be reduced would automatically qualify as part of the class action lawsuit. After some time, terminated employees will be notified of how and when they can opt out of the lawsuit if they wish. No registry is required in order to be a part of the class action.