Shopify Severance: The Cost of Shortchanging Employees

What allegations have been made against Shopify regarding employee dismissals and severance packages?

When an employer makes the decision to dismiss an employee, it can be an expensive process. Many employees will be entitled to a significant amount of severance, calculated by considering factors like their tenure, age, position, compensation level and availability of similar employment. All too often, an employer will try to get away with paying an employee less than their proper entitlements. A recent class action lawsuit has alleged misconduct that is rarely seen by an employer and may have even more costly consequences.

What allegations have been made against Shopify regarding employee dismissals and severance packages?

Shopify is under fire for allegedly dismissing a number of employees under questionable circumstances. It first dismissed these employees with hefty severance packages in exchange for a release. The employees signed the package and accepted the offer. Later, however, Shopify has allegedly claimed that they miscalculated, and offered the employees a significantly lower severance package.

This is something very uncommon to see in the world of employment, or contracts at large. Typically, a contract is formed once an offer is made and accepted in exchange for something of value. Shopify made their offer of severance, and the employees accepted. Shopify has come under fire for trying to void that agreement, and instead make a new agreement for much less. The employees, needless to say, are not happy.

Ultimately the courts will have the final say on this matter, but the issue lends itself to a conversation on the current economy, job market, and employers looking to cut costs. As we continue to see more and more employees dismissed, it is important to remember that difficult economic times should lengthen severance packages, not shorten them.

What are the rights and obligations of employers in terms of severance and employment concerns?

To better understand your employment rights and explore the viability of a claim, we encourage employees to seek legal advice. Equally, we encourage employers to speak with a lawyer to understand their rights and obligations, or any other employment concerns. We at Whitten & Lublin are happy to provide insight and advice into your specific circumstances. If you are looking for employment lawyers and would like more information about what Whitten & Lublin can do for you, please contact us online or by phone at (416) 640-2667 today.

Author – Rachel Patten