Understanding the Challenges of Job Loss Due to Company Insolvency
The closure of a 355-year-old department store chain like Hudson’s Bay is a significant event that affects not only the owners but also the employees who lose their jobs. When a company is unable to cope with its debts, the disappearance of an employer brings additional difficulties in the unemployment process. According to Sunira Chaudhri, a founding lawyer at Work-Law in Toronto, “It is absolutely more complex.” Employees may have to navigate through insolvency or creditor protection court processes to receive outstanding income, which can be challenging, especially during tax season or when applying for state support.
Navigating the Complexity of Job Loss
The additional level of complexity makes it even more crucial for employees to plan ahead to recover from job loss. Chaudhri and other experts emphasize the importance of being prepared to minimize the impact of job loss. Employees may have to deal with the loss of access to company systems, making it difficult to access salary information, vacation time, and other benefits. This is why it is essential to collect relevant documents, such as employment contracts, T4s, and letters that describe payment, commission, and vacation entitlements.
Collecting Essential Documents
As soon as it becomes clear that the company is facing financial difficulties, employees should collect their employment documents, advises Neena Gupta, a partner at Gowling WLG in Waterloo, Ont. “One of the shocking things that happens is that sometimes the systems that you rely on to access your salary check, find out how much vacation you have, and find out whether you have a bonus that comes to you and calculate your commission – you stop having access to these systems.” Having documents that outline what you are entitled to can help you determine what your employer owes you.
Seeking Help and Support
If there is a discrepancy between what you are owed and what you are offered in severance pay or a termination package, you may need to seek help from a lawyer, union, or the court-appointed trustee or monitor. This can be a complex and time-consuming process, but it is essential to ensure that you receive the compensation you are entitled to.
Conclusion
Losing a job due to company insolvency can be a challenging and complex experience. However, by being prepared and collecting essential documents, employees can minimize the impact of job loss and navigate the process more effectively. It is crucial to seek help and support from experts, such as lawyers and unions, to ensure that you receive the compensation you are entitled to. By understanding the challenges of job loss due to company insolvency, employees can take steps to protect their rights and secure their financial future.