What happens to employees when a company goes bankrupt?
When a company in Canada files for bankruptcy or begins restructuring under the Companies’ Creditors Arrangement Act (CCAA), employees are often left wondering what happens to their jobs, severance pay, and benefits.
At Samfiru Tumarkin LLP, we’ve helped thousands of non-unionized employees navigate mass layoffs and severance negotiations when companies close down or downsize.
However, when an employer is under CCAA protection or has legally declared bankruptcy through the courts, employees often face a very different reality – one where there is no legal action they can take to recover severance pay, and limited compensation is available through government…
