Question Period Note: HUDSON’S BAY COMPANY CLOSURE

Canada is experiencing one of its largest waves of job losses in years, as Hudson’s Bay moves forward with plans to close all of its stores and lay off a total of 8,000 employees by June 1, 2025. The terminations are occurring in stages, aligned with the schedule of store closures.

• The Government of Canada is closely monitoring the Hudson’s Bay Company (HBC) situation. Service Canada has been in regular contact with the Hudson’s Bay Company since the initial closure was announced in March 2025 and has delivered 143 virtual and in-person information sessions to approximately 2,500 affected workers across HBC’s 89 stores, two distribution centres and their corporate headquarters.

· To determine if individuals are eligible to receive Employment Insurance (EI) benefits, they are encouraged to apply as soon as they stop working.

· Should the company qualify to enter any Wage Earner Protection Program (WEPP) insolvency proceedings, the program will also be available to eligible employees in providing timely financial support.

The Employment Insurance (EI) program, which is insurance-based, is designed to protect individuals against the unexpected temporary loss of income from employment. Employers and employees both pay premiums so that employees may collect benefits if they are temporarily unemployed. Individuals are encouraged to apply for benefits and allow a Service Canada representative to determine if they are eligible.

Service Canada processes EI applications and makes decisions on a case-by-case basis, subject to qualifying and entitlement criteria ser out in the EI Act and its Regulations. Service Canada’s goal is to issue a payment, or decision of non-payment, within 28 days of receiving an application for benefits, 80% of the time.

The Wage Earner Protection Program (WEPP) provides timely financial support to individuals who are owed eligible wages after they have lost their job and their employer has gone bankrupt, become subject to receivership, or other WEPP qualifying insolvency proceeding.

To qualify for financial support from the WEPP, a worker must meet the following conditions:
• their employment has ended;
• their former employer has filed for bankruptcy, has filed for receivership or other WEPP qualifying insolvency proceedings;
• the worker is owed wages, vacation pay, disbursements of a travelling salesperson, termination pay or severance pay from their former employer;
• amounts were earned during the eligibility period or, in the case of termination or severance pay, employment was terminated during the eligibility period.

Under the WEPP Act, individuals who occupied managerial positions are excluded from WEPP eligibility. Criteria for the exclusion of managerial positions are included in the WEPP Regulations. Individuals are excluded if their responsibilities included:
• making binding financial decisions that affected the insolvent business; or
• making decisions concerning payment or non-payment of wages.

Service Canada processes WEPP applications and makes determinations on a case-by-case basis, subject to the criteria set out in the WEPP Act. Once an application has been processed, Service Canada informs the applicant of the decision in writing. For 2025, the maximum amount of WEPP for eligible claimants is $8,844.22.

WEPP payments are income arising from employment and therefore are earnings for EI purposes. However, under temporary measures responding to major changes in economic conditions, any WEPP payments issued for vacation pay, severance or termination pay will not be deducted from EI benefits for EI claims between March 30, 2025, and October 11, 2025.

Service Canada has offered information sessions to all affected workers. To date, Service
Canada has delivered 143 virtual and in-person information sessions to approximately
2,500 participants across HBC’s 89 stores, two distribution centres and their corporate
headquarters. An additional seven information sessions have been scheduled.
Information sessions for affected HBC employees focus on various Service Canada programs
and services including Employment Insurance (EI) and WEPP as well as provincial programs
and supports.

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