Lululemon Layoffs and Severance Pay

Lululemon Athletica, commonly known as Lululemon, is a Canadian athletic apparel retailer that specializes in yoga and activewear designed for both men and women. The clothing retailer offers a wide selection of athletic apparel, including yoga pants, leggings, sports bras, tops, and outerwear. In addition to their physical stores, Lululemon also operates an online store.

Lululemon employs approximately 34,000 people worldwide, with nearly 9,000 individuals (26% of its total workforce) working across over 60 locations in Canada. The company’s headquarters is in Vancouver. Some common roles at the clothing chain include retail store associates, brand ambassadors, designers, merchandisers, supply chain professionals, marketing and communications specialists, e-commerce experts, and corporate employees supporting areas such as finance, human resources, and operations.

The company was founded in 1998 by Chip Wilson in Vancouver as a small yoga-inspired clothing brand. It rapidly gained popularity and opened its first international store in 2003, and went public in 2007, trading on the NASDAQ stock exchange.

In May 2023, Lululemon promised to expand its headquarters and create 2,600 jobs over the next five years. The announcement came months after the government of Canada gave the company the ability to hire foreign workers for highly skilled jobs, including management jobs, software engineers and computer technicians, without needing to apply for a labour market impact assessment. Lululemon initially said they would move their headquarters out of Canada if they didn’t obtain the exemption.

Severance for Lululemon employees

In Canada, non-unionized employees at Lululemon can get up to 24 months of severance pay when they are fired or laid off from their job. This includes individuals working full-time, part-time, and hourly in Ontario, Alberta, or B.C.

Severance is the compensation a non-unionized worker in Canada receives from their employer when they are fired without cause.

Even if you are fired for cause, it’s very likely that you are still entitled to full severance pay because employees often don’t meet the conditions necessary for this type of dismissal.

LEARN MORE
• Severance for provincially regulated employees
• Severance packages in mass layoffs

Regardless of a company’s grasp on employment law, they are legally required to provide proper compensation following a termination.

This concept applies during challenging economic conditions, downsizing, the closure of a business, or major public health events such as the COVID-19 pandemic.

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

The employment lawyers at Samfiru Tumarkin LLP have represented numerous clothing industry employees over the years in severance package negotiations.

We have successfully secured much larger amounts for individuals employed across a variety of positions, from entry level jobs to executives.

How to properly calculate severance pay

Employers often incorrectly calculate severance pay. There is a belief that severance pay is one week’s pay, two weeks’ pay, or a week for every year of service an employee has with the company.

For non-unionized employees, the main factors of termination or severance pay include age, length of service, position, bonuses, benefits, and the ability to find new work.

If you work at Lululemon, you are likely a provincially regulated employee. That means your severance package must consider:

• Your minimum severance pay as a provincially regulated employee, which is determined by each individual province.
• Your full severance pay according to our legal system (common law) which can be as much as 24 months’ pay.

To figure out how much compensation you may be entitled to, use our firm’s Pocket Employment Lawyer.

ADDITIONAL RESOURCES
• Severance Pay in Ontario
• Alberta severance packages
• Understanding severance in B.C.
• Layoffs in Canada

Don’t sign on the dotted line!

Do not accept any severance offer, termination papers, or exit agreement that Lululemon may provide you with.

Once you sign back these documents, you eliminate your ability to negotiate a fair and proper severance package.

Generally speaking, if an employee does not receive the proper amount of severance pay when they lose their job, they may be considered to have been wrongfully dismissed. An employment lawyer at Samfiru Tumarkin LLP can analyze your situation and explain how much compensation you may be owed.

Talk to an employment lawyer

The experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals across the country. In addition to severance package negotiations, our team has experience securing solutions for the following employment matters:

Our lawyers in Ontario, Alberta, and B.C. stand ready to help you solve your workplace issues.

If you are a non-unionized employee who needs help with an employment issue, contact us or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer.