Lowe’s Closures and Severance Pay

Lowe’s closing 34 stores across Canada

Lowe’s announced Wednesday that they will be closing 34 out of 67 stores across Canada in an attempt to restructure the hardware store chain.

There is no clear indication yet as to how many employees will be negatively impacted by this move.

Nine stores will be closed in Ontario and three in British Columbia. Alberta will lose six stores, three in Nova Scotia, one in Saskatchewan and twelve in Quebec.

Lowe’s said in a statement that the shuttered stores are “underperforming” and that this decision was necessary to ensure the survival of the business.

The company closed 31 stores in Canada last November.

Severance Pay for Lowe’s Employees

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

It is being reported that some workers will be transferred to other locations where such a move is 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.

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• Severance packages for Rona employees

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.

Lowe’s stores to be closed (Ontario and B.C.)

Ontario (January 31, 2020)

• Lowe’s Etobicoke – North
• Lowe’s Thunder Bay
• Lowe’s Cornwall
• Home & Garden RONA (Cambridge)
• RONA Mississauga (Rockwood Mall)
• Reno-Depot Aurora
• RONA Oshawa
• RONA Ajax

Ontario (January 31, 2020)

• Lowe’s Prince George
• RONA Surrey (Newton)
• RONA Osoyoos

Find a total list of Canada-wide closures at GlobalNews.ca