Shopify

If your employment with Shopify in Ottawa has ended, or you have been offered a severance package, the rules that apply depend on your employer's jurisdiction, your contract and your length of service. This guide explains how notice, termination pay and severance can work for Shopify employees and what to do before you sign anything.

At a glance

• Employer type: technology and IT
• Law that generally applies: Ontario Employment Standards Act (provincial), plus your contract and, if you are not unionized, common law
• If you are in a union: your collective agreement and grievance deadlines apply
• First step: do not sign a release or severance agreement until you understand it, and ask how long you have to respond

About Shopify and your employment

Shopify is a commerce software company with its roots and headquarters in Ottawa, employing people in product, engineering, design, marketing, support and operations.

Technology companies often compensate employees partly with equity. Check how unvested options or restricted stock units are treated on termination, because the plan wording controls and the timing can be important.

Which law applies to Shopify employees?

Most employees who work in Ontario for provincially regulated employers, including most technology and IT employers, are covered by the Ontario Employment Standards Act (ESA). If you worked for Shopify for three months or more, the ESA generally requires written notice of termination or pay in place of notice. The minimum is one week after three months, two weeks after one year, three weeks after three years, and one more week for each additional year up to a maximum of eight weeks.

Some employees are also entitled to ESA severance pay. It generally applies if you have worked for the employer for five years or more and the employer has an Ontario payroll of $2.5 million or more, or the termination is part of certain mass terminations. It is one week of regular wages for each year of service, with a pro-rated amount for part of a year, up to 26 weeks. Whether this applies depends on the employer's payroll and your length of service.

The ESA sets minimums. Employees who are not unionized may also have a claim for reasonable notice at common law, which is often longer than the ESA minimum. There is no formula, and courts consider factors such as your role, length of service, age and the availability of similar employment. A valid termination clause in your contract can limit this, and some clauses are not enforceable.

Issues that often come up for technology and IT employees

Equity and bonuses

Stock options, restricted stock units and bonuses are often governed by plan documents. Check how unvested awards and bonuses are treated, and note any short exercise deadlines.

Non-compete and non-solicit clauses

Ontario's ESA generally prohibits non-compete agreements for employees, with limited exceptions such as certain executives and the sale of a business. Non-solicit and confidentiality clauses are treated differently.

Hybrid and remote work changes

A substantial unilateral change to your location, role or pay can raise constructive dismissal questions. Seek advice before you resign.

Contract work and project endings

If you work on a client contract, ask whether the end of the contract means reassignment or termination. If you are classified as a contractor, your status may still be that of an employee.