Vancouver employment lawyer on severance for Georgia Straight employees

Georgia Straight, a Vancouver-based newspaper, was recently acquired by a new publisher as its previous owner filed for bankruptcy. Long-service employees were let go in a quick zoom call and offered nothing in terms of severance pay, vacation, etc.

A Vancouver employment lawyer at Samfiru Tumarkin LLP spoke to The Tyee and explains that this is a “mind-blowing” problem, but familiar.

“In a case where termination happens by the bankrupt company and there’s no indication employment happened with the new company, the employee is an unsecured creditor,” The lawyer explains.

They go on to state that employees have limited options in this type of scenario. “They can join the queue of creditors trying to get money from the bankrupt firm, or sign onto a federal program that provides a “modest” sum in lieu of severance pay.” Neither option is likely to compensate employees fully.

“It’s terrifying to me that employees can be left basically without a life raft in a decision over which they have no control,” the lawyer concludes.