In 2025, the beloved retail brand Toys “R” Us is once again making headlines—this time for another round of mass layoffs across Canada. For many employees in British Columbia, this news brings stress, uncertainty, and numerous unanswered questions. Losing your job, whether you’ve been with the company for 20 years or only a few months, can feel overwhelming, especially if you’re unsure of your employee rights under BC employment law.
If you’ve recently been laid off from Toys “R” Us, or you’re worried you might be next, it’s important to understand your rights as a worker in BC. Knowing what severance pay you may be entitled to, when a layoff could be considered wrongful dismissal, and how to protect your future is key. This is where an experienced local employment lawyer, like the team at Sorensen Truong LLP, can help guide you through the process and ensure you get what you’re owed.
Why Are Toys “R” Us Layoffs Happening Again?
Over the past decade, Toys “R” Us has faced multiple rounds of restructuring, store closures, and shifts in business strategy. Economic pressures, changing consumer behaviour, and competition from online retailers have forced the company to cut costs.
In 2025, reports suggest the layoffs are part of a nationwide restructuring plan affecting both retail floor employees and corporate staff. For BC workers, this raises immediate questions:
- Am I entitled to severance pay?
- Do I have to accept the package offered?
- Can I be laid off without notice?
- What if I believe I was targeted unfairly?
Employee Rights in BC During Layoffs (2025 Update)
British Columbia’s Employment Standards Act (ESA) sets out the minimum rights and protections for employees during terminations and layoffs. However, many workers are entitled to more than the minimum through their employment contracts or common law rights.
1. Notice of Termination or Pay in Lieu
If your employment is terminated, your employer must either:
- Provide written notice, or
- Provide pay instead of notice (often called severance pay).
The minimum notice under the ESA is:
- 1 week after 3 months of employment
- 2 weeks after 1 year
- 3 weeks after 3 years
- Plus 1 additional week for each year of service (up to 8 weeks).
However, common law (court decisions) often provides much higher compensation, especially for long-term employees or those in higher positions.
2. Group Terminations
If Toys “R” Us is terminating 50 or more employees at a single location within 2 months, group termination rules apply.
The employer must provide written notice to the employees and the BC Employment Standards Branch:
- 8 weeks’ notice if 50–100 employees are terminated
- 12 weeks if 101–300 employees are terminated
- 16 weeks if more than 300 employees are terminated
These notice periods are in addition to any individual notice required.
3. Wrongful Dismissal
A wrongful dismissal occurs when an employer terminates an employee without providing reasonable notice or fair severance pay. Even if Toys “R” Us claims your position is eliminated due to restructuring, you may still have a wrongful dismissal claim if:
- You were not given adequate notice or pay
- Your employer did not follow proper termination procedures
- You were terminated for discriminatory reasons (age, gender, disability, etc.)
4. Constructive Dismissal
If Toys “R” Us significantly changes your job duties, pay, or working conditions without your consent, it may amount to constructive dismissal—a form of wrongful dismissal where you are entitled to resign and claim severance.
5. Temporary Layoffs
Under BC law, a temporary layoff is only legal if:
- It is permitted in your employment contract, or
- You agree to it.
A temporary layoff can last up to 13 weeks in 20 weeks (longer in special circumstances). If the layoff exceeds this, it becomes a termination, triggering your right to severance.
What Severance Pay Could Look Like in 2025
Many employees assume the ESA minimum is all they are entitled to, but common law severance can be much more generous, sometimes several months or even over a year’s pay, depending on factors such as:
- Your age
- Length of service
- Position and responsibilities
- Availability of similar employment in your field
For example, a Toys “R” Us store manager with 15 years of service could be entitled to 12–18 months’ pay under common law, not just the ESA minimum.
Benefits and Unused Vacation Pay
If you are laid off, Toys “R” Us must pay out any unused vacation days and ensure your benefits continue through the notice period. You may also have the right to continue certain benefits during your severance period, depending on your contract.
How Sorensen Truong LLP Can Help
If you have been affected by the 2025 Toys “R” Us layoffs, Sorensen Truong LLP, a trusted employment law firm in BC, can help you:
- Review your severance package to ensure it meets your legal entitlements
- Negotiate for better compensation if the offer is unfair
- Identify wrongful dismissal claims
- Advocate for your rights if discrimination played a role in your termination
Our lawyers have extensive experience handling mass layoff cases and retail sector employment disputes. We understand the urgency of acting quickly—there are strict deadlines for filing claims.
Practical Steps If You’ve Been Laid Off from Toys “R” Us
- Do not sign anything immediately. Many employees feel pressured to sign severance agreements right away, but you should always seek legal advice first.
- Gather all documents. Keep copies of your employment contract, termination letter, pay stubs, and any communications related to your layoff.
- Apply for Employment Insurance (EI) promptly to avoid delays in benefits.
- Consult an employment lawyer to determine whether you are entitled to more than the initial offer.
Final Thoughts
The 2025 Toys “R” Us layoffs are a difficult reminder that job security in retail is never guaranteed. While the news can be devastating, you are not powerless. BC workers have strong legal protections, but you must know them to enforce them.
If you have been impacted, do not settle for less than you deserve. Get informed, take action, and seek legal guidance from professionals who understand employment law in BC.
Sorensen Truong LLP is here to stand by your side, review your case, and fight for the severance and treatment you are legally entitled to.
