Huffington Post – Sears Canada Laid-Off Employees Won’t Receive Severance

Sears Canada’s move to file for creditor protection means that 2,900 employees will not be receiving severance.

Creditor protection blocks the retailer from potential legal action as it works on reversing its rapidly declining fortunes.

Part of the company’s court-supervised restructuring involves letting go of 17 per cent of its staff, or 2,900 employees, and closing 59 stores.

As long as court protection exists, no Sears Canada employee can pursue termination entitlements, said Lior Samfiru, a Toronto Employment Lawyer and partner at Samfiru Tumarkin LLP. If the company refuses to honour agreements for severance or salary continuances, “there is no recourse for those now left empty-handed.”

Read more of Lior’s comments in the Huffington Post article.

Learn more about the Sears Canada bankruptcy and how the Sears Act works.