Loblaw Companies Limited operates more than 2,400 stores across Canada under banners such as Loblaws, No Frills, Zehrs, Real Canadian Superstore, and Shoppers Drug Mart. The company employs over 200,000 people nationwide, with a large concentration of employees in Brampton, where Loblaw’s corporate head office is located.

As a major player in the retail, grocery, and pharmacy sectors, Loblaw periodically restructures its operations, affecting both frontline and corporate staff. Employees may be offered severance packages, early retirement options, or be terminated without cause due to downsizing or technological shifts.

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Steps to Take if You’ve Been Let Go

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1. Do Not Sign a Severance Offer Without Legal Advice

Severance packages typically contain legal release clauses that waive your right to pursue additional compensation. Signing without legal review could cost you tens of thousands of dollars. Always speak to a lawyer before accepting any offer.

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2. Understand Your Rights Under Ontario Law

Under the Employment Standards Act (ESA), eligible employees may receive:

• Termination pay of up to 8 weeks
• Severance pay of up to 26 weeks if you've worked 5+ years and the employer has a payroll over $2.5 million (Loblaw clearly meets this threshold)

But these are minimums. Under common law, employees may be entitled to as much as 24 months of severance based on their age, length of service, position, and ability to find comparable work.

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3. Unionized? Review Your Collective Agreement

Many Loblaw employees are unionized under UFCW or other retail unions. Your entitlements will be governed by your collective agreement, but voluntary buyout programs and store closures can create grey areas. In such cases, speaking with an employment lawyer may be beneficial.

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4. Keep Detailed Records

Save any documents related to your employment and termination — offer letters, performance reviews, termination letters, and communication with management or HR. These records can be important when reviewing or disputing your severance.

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5. Speak to an Ontario Employment Lawyer

Retail employers may offer standard severance packages that don’t reflect your full legal entitlements. A lawyer can assess your case and negotiate a stronger severance that better compensates you for your service and future job prospects.

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Frequently Asked Questions

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Am I entitled to severance if I’m a cashier, stock associate, or front-line worker?

Yes. All non-unionized employees — including hourly workers — are entitled to severance under Ontario law. Depending on your age and years of service, your common law entitlements may far exceed ESA minimums.

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What if I received a severance offer as part of a store closure?

Loblaw may attempt to limit severance to ESA minimums in such situations, but you may be entitled to more under common law. A legal review can determine the true value of your claim.

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I’m a long-term employee near retirement. Does that increase my severance?

Yes. Older employees and those with long service are typically awarded higher severance packages under Ontario common law — sometimes as much as 18–24 months’ pay.

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I worked part-time. Do I still get severance?

Yes. Part-time workers are still eligible for both ESA and common law severance. Courts focus on the nature of your working relationship, not your job classification or hours.

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Does my employment at a franchise (e.g., Shoppers Drug Mart) qualify?

It depends. Many Shoppers Drug Mart stores are independently operated franchises, but if Loblaw or another entity effectively controlled your work, you may still be entitled to severance from a parent company or related employer.

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Can I get severance if I was on leave (e.g., medical or parental) when terminated?

Yes. Being on a protected leave does not eliminate your right to severance. You may also have a claim for a human rights violation if your termination was related to your leave.

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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 private-sector employers like Loblaw Companies Limited. 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.