As Hudson's Bay Company begins liquidation sales at nearly all of its Canadian stores, over 9,300 employees are facing job loss—and many are learning they may not receive any severance pay.
Meanwhile, according to reporting, the company has set aside up to $3 million in bonuses for 121 executives and managers.
What's Happening at Hudson's Bay?
Hudson's Bay, Canada's oldest retailer, filed for creditor protection earlier this month under the Companies' Creditors Arrangement Act (CCAA), citing nearly $1 billion in debt. The company has now received court approval to liquidate all but six of its 96 stores, with the process expected to finish by June.
The company will issue up to $3 million in retention bonuses to 94 store managers and 27 head office staff—including $1.08 million to just 10 senior leaders. However, most of the company's 9,300 workers will not receive any severance payments.
Are Laid-Off Employees Entitled to Severance?
Under normal circumstances, employees in Ontario are entitled to, at a minimum:
- Termination pay (minimum notice or pay in lieu under the Employment Standards Act), and
- Severance pay (for employees with 5+ years of service at large employers), equal to 1 week per year of service, up to 26 weeks.
But when a company files under the CCAA or becomes insolvent, employees become unsecured creditors—placing them at the back of the line for any compensation after banks, landlords, and other secured creditors. In other words, despite years of service, many Hudson's Bay workers may receive nothing beyond what is available through federal support programs.
What Can Employees Do Now?
If you've been affected, here are key steps to consider:
- Seek Advice on Whether You are a Unionized Employee
According to court documents, there are 647 employees who are unionized and protected under their collective agreements. It is imperative to determine whether you may be one of those employees.
- Apply for Employment Insurance (EI)
EI can provide up to 55% of your earnings for up to 45 weeks, depending on eligibility.
- File for the Wage Earner Protection Program (WEPP)
WEPP offers compensation for:
- Unpaid wages
- Vacation pay
- Termination pay
- Severance pay (up to a maximum of $8,844.22 in 2025)
Employees can only apply once they've been formally terminated.
- Get Legal Advice
Some employees may still have legal claims, especially if another company (like Estée Lauder or MAC Cosmetics) employed them inside a Hudson's Bay store. In such cases, the third-party employer may owe full severance pay under common law.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
