NEWS REFERENCE
According to a report by Global News, published in January 2026, The Beer Store has confirmed it will close four more locations — in Brampton, Toronto, Hamilton, and London — effective March 22, 2026. This marks the first closure announcement since the expiry of its agreement with the Ontario government, which previously required the company to keep at least 300 stores open until the end of 2025. With that agreement now expired, The Beer Store is no longer restricted in how many additional locations it can close. Over 120 locations have already shut down since Ontario opened beer and wine sales to grocery and convenience stores in 2024.
Why This Matters Now
For nearly a century, working at The Beer Store meant something close to job security — steady hours, a union card, and a paycheque that didn’t disappear with the seasons. That has changed.
Since Ontario liberalized alcohol retail in 2024, The Beer Store has closed well over 120 locations, and the company is no longer bound by any government commitment to keep stores open. With the $225 million transition fund fully spent and the protective agreement expired, 2026 closures are happening without restriction — and more are expected.
If you work at The Beer Store — or you’re an employer managing a closure — here is what the law says.
For Employees: What You Are Entitled To
If you’re unionized (UFCW)
Most Beer Store retail and warehouse employees are represented by UFCW Canada. This is the single most important fact for you to know. Your termination, layoff, and severance entitlements are governed primarily by your collective agreement — not just the ESA. Collective agreements often contain seniority-based layoff and recall rights, enhanced severance formulas, and bumping rights that allow more senior employees to displace junior ones at other locations rather than lose their job outright.
Contact your UFCW representative before agreeing to anything. They are your first and most important resource.
ESA termination pay
Regardless of union status, the Employment Standards Act, 2000 guarantees one week of notice — or pay in lieu — per year of service, up to a maximum of eight weeks. This is the legal floor for everyone.
ESA severance pay
The Beer Store is owned by three of the largest brewers in the world — Molson, Labatt, and Sleeman. Its payroll comfortably exceeds the $2.5 million threshold that triggers ESA severance pay. If you’ve worked for the company for five years or more, you are entitled to an additional week’s pay per year of service, up to 26 weeks — separate from your termination notice.
Long-service employees — common law may entitle you to more
Many Beer Store employees have worked there for 10, 20, even 30 years. Long service is one of the strongest factors courts consider when awarding common law reasonable notice — and for older, long-tenured employees in a shrinking retail sector, finding comparable work can be genuinely difficult. That difficulty works in your favour. Don’t assume the ESA minimum is the end of the conversation.
Bumping and transfer offers
The Beer Store has previously told media that staff at closing locations would be “reassigned to other stores” rather than laid off. If you’re offered a transfer, consider it carefully — a transfer to a significantly farther location, a demotion, or reduced hours may not be a “reasonable” offer, and declining it may not affect your severance entitlement. Your union or a lawyer can assess whether a transfer offer is genuinely equivalent.
For Employers: What This Closure Wave Means for Compliance
If you’re managing store closures — whether at The Beer Store or any retail business affected by Ontario’s changing alcohol market — there are obligations you cannot overlook.
Mass termination rules may apply. If 50 or more employees across Ontario are terminated within a four-week period — even across multiple store locations being treated as part of one overall closure plan — Part XV of the ESA requires enhanced notice (8 to 16 weeks depending on numbers) and a filing with the Director of Employment Standards. Closures happening in waves can still trigger this threshold if they’re connected.
Collective agreement obligations come first. If your workforce is unionized, your collective agreement likely contains specific notice, severance, seniority, and recall provisions that go beyond — and in some cases conflict with — ESA minimums. These must be honoured, and failing to follow seniority-based layoff procedures correctly is one of the most common sources of grievances in retail closures.
“Reassignment” must be genuine. If you’re telling employees they’ll be moved to other locations rather than laid off, that offer needs to be a real, comparable position — similar pay, similar hours, reasonable commuting distance. Token reassignment offers used to avoid severance obligations can backfire into larger claims later.
Document everything. Keep clear records of closure timelines, notice given, offers made, and employee responses. In an industry undergoing this much public scrutiny, a well-documented, properly executed closure process is your best protection against disputes.
What To Do Right Now
If you’re an employee:
- Contact your UFCW representative immediately — your collective agreement is your primary protection
- Do not sign any severance or release document without review
- Calculate your years of service — every year matters for both ESA and common law entitlements
- If offered a transfer, ask what it actually involves before accepting or declining
- Apply for EI promptly if your employment is ending
If you’re an employer:
- Review your collective agreements before issuing any closure notices
- Determine whether mass termination thresholds apply across your closure timeline
- Ensure transfer/reassignment offers are genuinely comparable
- Get legal advice before finalizing severance packages — getting it wrong is far costlier than getting advice upfront
The bottom line: The Beer Store’s closures are no longer limited by any government agreement — which means more locations, and more job losses, are likely throughout 2026. For employees, especially long-service and unionized staff, this is not a situation where the standard ESA minimums tell the whole story. For employers, this is a moment where getting the legal process right — especially around collective agreements and mass termination rules — matters more than ever.
Whether you’re trying to understand what you’re owed, or trying to manage a closure the right way, get advice before anything is finalized.
