Starbucks is laying off around 900 non-retail employees and closing stores across Canada and the U.S. as part of a major restructuring. Approximately 568 corporate Starbucks locations have closed across North America, with significant impacts in Canada:
- 13+ locations confirmed closing in Toronto
- 9 Starbucks locations closed in Ottawa
- At least 12 locations closed in British Columbia
- Additional closures reported across Alberta, Manitoba, and other provinces
The company’s overall North America count declined by about 1% after accounting for both openings and closures, affecting hundreds of Canadian workers in both retail and corporate positions.
If you’re a Starbucks employee affected by these layoffs or store closures, understanding your rights under Canadian employment law is crucial before accepting any severance package.
Your Legal Rights Under Canadian Law
Provincial Employment Standards (Ontario)
Most Starbucks employees in Canada are covered by provincial employment standards. In Ontario, minimum notice requirements are:
- Less than 1 year: 1 week
- 1-3 years: 2 weeks
- 3-4 years: 3 weeks
- 4-5 years: 4 weeks
- 5-6 years: 5 weeks
- 6-7 years: 6 weeks
- 7-8 years: 7 weeks
- 8+ years: 8 weeks
Plus Severance Pay: If you have 5+ years service and Starbucks’ Ontario payroll exceeds $2.5 million, you get an additional 1 week per year of service, up to 26 weeks maximum.
Other Provinces
British Columbia: 1-8 weeks notice based on service, no separate severance pay requirement.
Alberta: 1-8 weeks notice based on service, no separate severance pay.
Quebec: 1-8 weeks notice under similar structure, with additional protections under Quebec labour law.
Common Law Entitlements (What You're Really Owed)
Employment Standards minimums are just the floor. Canadian courts consistently award much more based on:
- Your age and years of service
- Your position and responsibilities
- Difficulty finding similar work in your area
- Whether you were recruited from secure employment
Typical common law severance: 3-4 weeks per year of service for most employees, adjusted based on these factors.
What You're Actually Owed:
Store Manager, 8 Years, Age 42, $55K
- ESA Minimum: 8 weeks notice + 8 weeks severance = 16 weeks
- Common Law Entitlement: 8-10 months severance
Shift Supervisor, 5 Years, Age 35, $42K
- ESA Minimum: 5 weeks notice + 5 weeks severance = 10 weeks
- Common Law Entitlement: 5-6 months severance
Corporate Analyst, 6 Years, Age 38, $65K
- ESA Minimum: 6 weeks notice + 6 weeks severance = 12 weeks
- Common Law Entitlement: 6-8 months severance
Barista, 3 Years, Age 26, $35K
- ESA Minimum: 3 weeks notice
- Common Law Entitlement: 3-4 months severance
Here you can read about recent layoffs at popular companies such as Stericycle, RBC, Canada Post layoffs and Bell layoffs. And here you can calculate how much severance you’re owed
What Starbucks' Severance Package Likely Includes
Based on corporate restructuring patterns and the 900-employee layoff scale:
Base Severance: Typically 1-3 weeks per year of service, which exceeds statutory minimums but falls short of common law entitlements.
Benefits Continuation: Health and dental coverage for a limited period, often matching only the statutory notice period.
Vacation Payout: Payment for unused vacation days accumulated.
Possible Transfer Options: Starbucks said it was “working hard” to offer affected employees transfers to other locations, though this may not be feasible for everyone.
What's Typically Missing
Full Common Law Severance: Initial packages often represent 40-60% of what courts would award.
Extended Benefits: Coverage typically ends much sooner than your full notice period would suggest.
RRSP Contributions: Employer matching usually stops immediately upon termination.
What Store Closure Employees Should Know
Many closing stores are falling short of financial performance targets or failing to create the environment customers expect, but this doesn’t reduce your severance rights.
Store Closure vs. Individual Layoff
Your legal rights are the same whether your store closes or you’re individually laid off. You’re still entitled to reasonable notice under common law.
Geographic Considerations
If you’re offered transfer to another location far from your current workplace, you’re not obligated to accept. Significant location changes can constitute constructive dismissal, preserving your right to full severance.
Part-Time Workers
Part-time employees have the same rights to reasonable notice as full-time workers. Your severance should reflect your regular part-time hours and earnings.
How to Respond to Starbucks' Offer
Don’t Sign Immediately
Tell management you need time to review the offer with legal counsel. This is your right under Canadian law.
Document Everything
Gather:
- Employment contract or offer letter
- Pay stubs showing wages and tips
- Benefits information
- Performance reviews
- Store closure notification
Respond in Writing
Write a professional letter outlining:
- Why the offer doesn’t meet common law standards
- Your calculation of appropriate severance
- Specific items you want to negotiate
- Timeline for response
Common Mistakes to Avoid
Accepting verbal offers without written confirmation – Get everything in writing before signing.
Signing under pressure from managers – You’re entitled to reasonable time to review and seek legal advice.
Assuming part-time means no entitlement – Part-time workers have full common law rights.
Not considering benefits value – Extended health coverage and RRSP contributions significantly increase total package value.
Believing store closure means different rules – Your rights are the same regardless of why you’re being terminated.
What Affected Employees Are Saying
From social media and employee forums:
“One day’s notice to close permanently” – Employees report sudden closures with minimal warning, creating financial hardship.
“They offered transfers but not realistic ones” – Transfer offers to locations 30+ km away without compensation for increased commute.
“The package seemed low so I consulted a lawyer” – Multiple employees report successfully negotiating better terms after legal consultation.
“Benefits ending immediately was a shock” – Employees express concern about sudden loss of health coverage.
Timeline and Next Steps
Immediately: Don’t sign any severance agreement or release. Request time to review.
Within 1 week: Consult with an employment lawyer (free consultation available).
Within 2-3 weeks: Respond to Starbucks with counter-proposal or legal representation.
Within 4 weeks: Apply for Employment Insurance regardless of severance negotiations.
Questions to Ask
- What should I actually be receiving under common law?
- Is Starbucks’ offer fair or should I negotiate?
- What are my chances of getting more?
- How do your fees work?
Most employment lawyers work on contingency for severance cases, meaning no upfront costs and payment only if your package increases.
Key Takeaways
With hundreds of Starbucks locations closing across Canada and 900 employees laid off, understanding your rights is essential.
Employment Standards minimums are not what you’re actually entitled to. Most employees can negotiate significantly better packages under common law.
Store closures don’t reduce your severance rights. You’re entitled to full common law notice regardless of business reasons.
Don’t accept Starbucks’ initial offer without legal review. Most packages can be negotiated higher, especially with legal representation.
Time is important but not urgent. Take the days you need to understand your rights and consult with an employment lawyer before signing anything.
