Costco is one of Canada’s largest private-sector employers, with more than 100 warehouse locations across the country and a major presence in Ontario. Its stores and distribution facilities in and around Brampton employ hundreds of individuals in retail, operations, logistics, and management roles. Although Costco is often regarded as a stable employer, it has, like many large corporations, made staffing changes due to business restructuring, store-level adjustments, or performance-related dismissals.

In such circumstances, employees are often presented with severance packages. But these packages may not reflect their full legal entitlements under Ontario’s common law.

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What You Should Do After Being Terminated from Costco Canada

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1. Review All Documents Carefully

Termination letters, severance agreements, and release forms often contain legal language that can waive your right to pursue additional compensation. Do not sign anything until it has been reviewed by an employment lawyer.

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2. Understand Your Rights Under Ontario Law

Employees in Ontario are protected under both the Employment Standards Act (ESA) and common law. Under the ESA, you may be entitled to:

• Termination pay of up to 8 weeks
• Severance pay of up to 26 weeks (if employed for 5+ years and if Costco’s Ontario payroll exceeds $2.5 million, which it does)

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However, under common law, you may be entitled to significantly more — up to 24 months' pay, depending on your:

• Length of service
• Age
• Position
• Ability to secure comparable employment

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3. Don't Assume It's a “Fair” Offer

Even large and well-regarded companies like Costco may offer severance packages that meet the minimum legal requirements, but fall short of what you are truly owed. An employment lawyer can help determine whether the offer reflects your full entitlement.

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4. Keep Records and Employment Documentation

Preserve your employment contract, termination letter, pay stubs, job description, and any internal communications regarding your termination or severance. These documents may be critical if a dispute arises.

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5. Speak With an Employment Lawyer

Having a legal professional review your termination package ensures your rights are protected, and could result in a significantly higher payout.

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Frequently Asked Questions

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I worked as a cashier or stock associate. Do I still qualify for severance?

Yes. All non-unionized employees — including hourly or part-time workers — are entitled to severance under Ontario law. Your entitlement depends on your length of service and other personal factors, not your job title.

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I was told I had to sign the severance offer quickly. Do I really?

No. While employers often include short deadlines, these are not legally binding. You are allowed time to review your options and consult with a lawyer.

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What if I was let go from a warehouse rather than a store?

Your legal entitlements are the same. Whether you worked in retail or logistics, the law protects your right to fair compensation upon termination.

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I worked part-time for many years. Do I still have a claim?

Yes. Courts recognize the value of long-standing part-time work. If you’ve worked consistently over the years, even part-time, you may still be entitled to significant severance.

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Costco says I was let go for “performance reasons.” Does that affect my severance?

Not necessarily. Unless Costco terminated you for just cause — which is a very high legal threshold, you are still entitled to severance pay. Most performance-related terminations do not meet the standard required to deny severance.

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I was on leave (medical or parental) when I was terminated. Can they do that?

Employees on a protected leave (like medical or parental leave) have strong protections under the ESA and Human Rights Code. If you were terminated while on leave, you may have a wrongful dismissal or human rights claim in addition to severance entitlements.

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Why Choose Randy Ai Brampton Employment Lawyers?

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 large national employers like Costco Wholesale Canada Ltd. 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.