The rise in pandemic shopping during lockdown lead to a massive increase in Shopify’s workforce. With the COVID-19 pandemic largely under control and Canadians returning to relatively normal life, online shopping is seeing a drastic cut. On Thursday May 4, 2023, Shopify CEO Tobi Lutke is dismissing over 2000 employees in a second round of layoffs.
The company is targeting management jobs rather than software technicians. Recently terminated Shopify employees will receive at least 16 weeks of severance pay and one week for every year of service with the company. These employees will also be receiving continued medical benefits, vocational services, access to an employee assistance program amongst other fringe benefits.
In Canada, employees at the Shopify are entitled to severance pay if they are laid off because of corporate restructuring or downsizing. Depending on factors of age, length of service and the type of job, severance can be up to 24 months of income protection. Therefore, Canadian workers may be entitled to substantially more severance than the company’s first offer.
A large number of corporations expect their employees to be ignorant of their complete severance rights. On the other hand, some employers are truly oblivious of their responsibilities to employees when termination of employment occurs. Despite a company’s understanding of employment laws, they all must pay the appropriate compensation following dismissal from a job.