Navigating the Hudson’s Bay Layoffs: What Termination Without Cause Means for Ontario Employees

In April 2025, Hudson’s Bay Company (HBC) announced a major restructuring that resulted in approximately 200 layoffs from its Toronto corporate office. The Hudson's Bay layoffs come as the retailer plans to shutter most of its stores across Canada, including many in Ontario. While the headlines focused on the retailer’s financial troubles, what matters most for affected workers is this: What are your rights, and what can you do now to protect yourself?

If you’ve been laid off or terminated without cause during this restructuring, or fear that your job may be next, now is the time to understand your legal options, especially regarding severance negotiation and employment standards in Ontario. Whether you've built your career over a few years or several decades, you may be entitled to far more than your employer initially offers.

Termination Without Cause in Ontario: What It Really Means

When you’re terminated without cause, it means your employment ended for business reasons unrelated to performance or misconduct. In Ontario, this type of termination is common in restructuring scenarios, but it still comes with strict employer obligations under both the Employment Standards Act, 2000 (ESA) and common law.

Under the ESA, most employees are entitled to:

• Notice or pay in lieu of notice (1 to 8 weeks, depending on length of service)
• Severance pay (up to 26 weeks for those with 5+ years of service and where the employer’s payroll exceeds $2.5 million)

However, the ESA only provides the minimum. In many cases, courts award much more under common law, based on your role, age, salary, and how long it may take to find new work. For senior employees, this can mean months of additional pay.

Don’t Assume the Severance Offer Is Fair

In times of mass layoffs, like those at Hudson’s Bay, employers may offer a standard severance package to all affected employees. But these packages often fall far below what you’re legally entitled to — and employers are banking on the fact that you might not challenge it.

Don’t sign anything before speaking with an employment lawyer. That offer you received may be negotiable, and you could be walking away from tens of thousands of dollars if you accept it without question.

An experienced employment lawyer in Toronto can review your severance offer and determine whether it meets your full entitlements under the ESA and common law — and help you negotiate for more if it doesn’t.

Layoffs During Restructuring: Know Your Rights

When companies restructure or file for creditor protection, like Hudson’s Bay has, employees often assume their rights are wiped out. But that’s not necessarily true. Even in insolvency scenarios, workers may still be entitled to severance — and should file claims accordingly.

In some cases, large-scale layoffs are labeled as “temporary,” but unless your contract allows for this, it could be treated as a constructive dismissal, meaning you’re effectively terminated and owed compensation.

Also keep in mind:

- You are not required to accept the first offer

- You are entitled to time to review the documents

- You can and should consult an employment lawyer before responding

- You may have grounds to challenge your termination if it appears discriminatory or unjust

What to Do If You’ve Been Affected By Hudson's Bay Layoffs

If you’ve been affected by layoffs by any employer — here are the immediate steps you should take:

1. Don’t panic, and don’t sign anything right away.

2. Gather all documents: your termination letter, employment contract, benefits information, and severance offer.

3. Consult an employment lawyer

4. Review whether your rights under the ESA and common law have been met.

5. Negotiate your severance — with legal support, you may receive much more than initially offered.

Contact Lecker & Associates — Employment Lawyers in Toronto

In the wake of massive corporate restructurings, such as this Hudson's Bay layoffs, it's easy to feel powerless. But under Ontario law, you are not without recourse. Whether you’re a frontline retail worker or a long-time corporate employee, you have legal rights — and the sooner you act, the better your chances of securing what you’re truly owed.

If you’ve been terminated without cause in Ontario, the team at Lecker & Associates is here to help. With over 40 years of experience advocating for employees, especially in large-scale layoffs and severance negotiations, we understand how to level the playing field and ensure you aren’t left behind.

Book a no-charge telephone interview with our trained intake staff or call us at 416-223-5391