Canadian Tire Corporation, Limited is one of Canada's most recognized and wide-reaching retail brands. With over 1,700 retail and gasoline outlets operating under banners like Canadian Tire, PartSource, SportChek, Mark’s, and more, the company plays a major role in the Canadian retail sector. It employs tens of thousands of workers across stores, regional distribution centers, and corporate offices — with a significant presence in Brampton and the Greater Toronto Area.

Like many large retailers, Canadian Tire Corporation occasionally restructures its operations due to market shifts, cost-saving initiatives, automation, or franchise-level changes. These transitions often lead to layoffs, store closures, and severance offers — some of which may not fully reflect your legal rights under Ontario law.

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What You Should Do After Being Let Go

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1. Review the Nature of the Termination

Were you let go without cause, part of a restructuring, or offered a voluntary exit? Each scenario may result in different severance entitlements. Even if the reason is not performance-related, the amount offered may still be negotiable.

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2. Understand the Legal Framework

If you are a non-unionized employee, you are protected by both the Employment Standards Act (ESA) and common law in Ontario. Under the ESA, you may be entitled to:

• Up to 8 weeks of termination pay, and
• Up to 26 weeks of severance pay, if you’ve worked more than 5 years and the company’s Ontario payroll exceeds $2.5 million (which Canadian Tire clearly surpasses)

However, under common law, your actual severance entitlement may be far more — up to 24 months’ pay, depending on factors such as your age, role, length of service, and ability to find comparable employment.

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3. Don’t Accept the Package Without Legal Advice

Most termination packages include a legal release, which, once signed, prevents you from pursuing any additional claims. A lawyer can review the offer and determine whether it's fair or if you should negotiate for more.

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4. Document Everything

Keep all emails, letters, employment contracts, performance evaluations, and communication regarding your termination. This documentation may be essential if legal questions arise.

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5. Act Quickly, But Carefully

While termination letters often include deadlines, these can sometimes be extended. Don’t rush into accepting terms. Use the time to seek legal advice and consider your options.

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Frequently Asked Questions

I was terminated from a franchised Canadian Tire store. Does that affect my severance rights?

Franchise stores are individually owned, but Ontario courts may still treat the corporate brand as a related employer in some cases. You may still be entitled to severance from the franchisee — and potentially Canadian Tire Corporation — depending on the nature of your employment relationship.

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I was offered severance but told I had to sign within five days. Is that legal?

Employers can set deadlines, but you are not legally required to respond within that timeframe. In fact, courts often criticize employers who use arbitrary deadlines to pressure employees. Always consult a lawyer before signing.

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I worked part-time. Do I still qualify for severance?

Yes. In Ontario, part-time employees are just as eligible for severance pay as full-time employees. The key factor is your length of service and the nature of your employment, not your hours.

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What if I was let go due to restructuring?

Being terminated due to restructuring or store closure still entitles you to severance. The reason for the termination (as long as it's not for just cause) does not eliminate your right to compensation.

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I worked in logistics or a Canadian Tire distribution center. Are my rights the same?

Yes. Regardless of whether you worked in a store, warehouse, or corporate office, you are entitled to severance based on your employment history and the legal framework in Ontario.

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My employer says I was an independent contractor. Do I have any rights?

Possibly. Many “independent contractors” are misclassified and are actually dependent contractors or employees. If your income came almost exclusively from Canadian Tire, you may still be entitled to severance.

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At Randy Ai Brampton Employment Lawyers, we specialize in helping employees understand their rights during challenging transitions. Our experienced employment law team has extensive expertise handling termination and severance issues, particularly with major retail employers like Canadian Tire Corporation. We ensure your rights are fully protected and aim to maximize your severance package, providing a smooth transition to your next opportunity.

Please do not hesitate to contact our experienced Brampton employment lawyers for a free legal consultation. Randy Ai Brampton Employment Lawyers can be reached at 365-536-2474 or by filling out the contact form