Lowe’s Closing Canadian Stores – Severance Rights

Severance Rights for Lowe’s Workers

Lowe’s, the home improvement retail chain is closing 31 locations in Canada, including 9 Lowe’s and Rona stores in Ontario and 1 Rona store in British Columbia. 20 Lowe’s locations in the U.S. are also being closed.

The North Carolina-based retailer said Monday that the closures are “part of its ongoing strategic reassessment” of its entire business.

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• Severance packages for Rona employees

The following locations in Ontario and B.C. are being closed:

ONTARIO

Rona Mississauga – Westdale Mall

Rona Mississauga – Lakeshore

Rona Sault Ste. Marie – 132 Black Road

Lowe’s Sault Ste. Marie – 238 Northern Avenue

Rona Peterborough

Rona Kingston

Rona Lakefield

Lowe’s North York

Rona Sudbury

BRITISH COLUMBIA

Rona Columbia Square – New Westminster

In total, Lowe’s has 2,390 stores across North America, which includes 630 in Canada.

“The decision to close stores is never one that we make lightly. However, following a detailed business review, we believe that this is the right path for the organization’s future,” Lowe’s Canada’s president Sylvain Prud’homme said.

“Everything will be done to ensure a smooth transition until the stores are closed, and Lowe’s Canada will support impacted employees, including by transferring eligible employees to other locations within our network whenever possible.”

Lowe’s Employees and Severance Pay: Facts

Lowe’s or Rona employees (non-unionized) should be aware of the following facts where severance pay is concerned, if they are terminated from their job:

You Are Likely Owed More Severance

Around 90% of non-unionized employees are wrongfully dismissed when they are terminated from their job. In other words, 90% of people who are let go are not offered an appropriate severance package. Instead, they are offered terrible severance packages that often provide their MINIMUM severance entitlements provided by the Employment Standards Act.

Often times, employers count on the fact that their employees may not know what their full severance entitlements are. Employees are offered inadequate severance, with a (meaningless) deadline that exists only to pressure the employee into signing away their opportunity to have the offer reviewed. Common law severance pay is based on several factors, including age, years of service, and position. Based on those and other factors, severance entitlements can amount to as much as 24 months’ pay.

Transferred to Another Lowe’s Location

Lowe’s Canada’s president has noted the eligible employees will be transferred to other locations where possible.

Lowe’s can offer affected employees comparable work at another location. This change in the terms of employment is acceptable, but only if the employer isn’t significantly changing the employee’s pay, position, responsibilities, benefits, or commute time. If Lowe’s does, in fact, make a drastic change to one of those areas, the employee can argue constructive dismissal, and resign with full severance pay.

If you find yourself in this situation, CONTACT US BEFORE YOU QUIT! Consult with an employment lawyer before making decisions about your employment situation.

Working Notice

Employers operating in Ontario or B.C. who wish to terminate an employee without cause must provide either notice (working notice) or pay in lieu of notice, or severance pay/termination pay.

Working notice requires an employer to notify the employee that in a specific amount of time (days, weeks or even months) their employment will be terminated. The employee is expected to continue working during this notice period, during which time they will continue to be paid the same amount pre-notice period.

Often times, employers will provide an employee with inadequate working notice. The amount of time provided does not take into account their full entitlements, as determined by age, position, length of service, and other factors as indicated by common law. It is therefore extremely important to consult with an employment lawyer at Samfiru Tumarkin LLP to determine if the working notice is adequate. If it is not, your employer may be required to provide severance in addition to notice, in order to meet your full severance entitlements under common law.

We have experienced employment lawyers in Toronto, Vancouver and Ottawa ready to assist you.