SkipTheDishes and its parent company has announced that it will be terminating about 800 employees from their jobs in Canada as the company is restructuring. The company explained that the layoffs are part of a review of the company’s business structure with an aim to ensure that SkipTheDishes has the right resources and systems in place to create growth in the future. The company has set out to the public that SkipTheDishes will provide impacted employees with extended access to healthcare benefits, an employee assistance program and career support services.
The company was founded in Winnipeg in 2012 and in 2016 it was acquired by Just Eat Takeaway.com. SkipTheDishes is an online food delivery service business that connects its customers to thousands of restaurants in Canada. Many employees in the Canadian food delivery industry have had to face being fired as the companies in this business are facing increasing issues with changing customer behaviours and an economic slowdown. These businesses will act to reduce operational costs to maintain profitability and downsize or even cease operations altogether.
SkipTheDishes’ popularity skyrocketed while the COVID-19 pandemic was in full swing, where many other businesses where temporarily shut down and people were staying home. Food delivery businesses like SkipTheDishes proliferated during this time as people sought their services in an effort to avoid venturing out in public to protect themselves from the virus. However, as the pandemic period is now in the past, people are attending restaurants again which has resulted in less business for SkipTheDishes. Also, inflation is now a concern for a lot of people, and the fact that interest rates have also soared, has led people to look for ways to reduce personal spending. Obviously, either eating at home or simply picking up a food order from a restaurant on your own is an easy way to reduce household costs.
What is the first thing a laid off employee should do?
The first thing that a dismissed or terminated employee should do is ensure that their termination package along with their employment agreement or contract is reviewed by an employment lawyer. This is because when an employee is terminated without cause, they are entitled to termination pay and, if applicable, severance pay. An employment lawyer will be able to assist the dismissed employee to confirm whether the employee’s termination package complies with Ontario’s employment statutory standards under Ontario’s Employment Standards Act, 2000, and the common law.
The employer can only lawfully limit an employee’s entitlement to proper notice under the common law if the employee’s employment agreement termination clause is enforceable. In our experience at Zeilikman Law, not a lot of employers’ employment agreements contain properly drafted and implemented termination clauses that can be enforced.
Finally, the employee should also ensure to discuss with an employment lawyer the facts leading up to their termination of employment in addition to the review of any termination package. The employment lawyer should be able to take into account any facts concerning negative treatment experienced by the employee leading up to their termination including any potential human rights concerns.
The Bottom Line
A dismissed employee in the food delivery industry should not rush to accept any termination or severance package that their former employer hands them. They have the option to approach an employment lawyer to assist them in order to properly navigate this often confusing situation in order to ensure that the employee has the best possible outcome and that their legal entitlements are protected.
