Nordstrom Ottawa closure and severance: Employment lawyer on CTV News

Interview Summary

The recent announcement of Nordstrom shutting down its Canadian stores has raised many questions surrounding employee rights in case of a business closure. Does the finances of an employer factor into severance entitlements? Will former Nordstrom employees see any compensation?

Alex Lucifero, an Ontario employment lawyer and Managing Partner at Samfiru Tumarkin LLP spoke to CTV News Ottawa’s Matt Skube on the closures and what this will mean for employees.

Interview Notes

• The company declares bankruptcy or pursues CCAA: In the event of bankruptcy or creditor protection, employees are unlikely to see much, if any, severance compensation. This is the unfortunate likelihood for most Canadian Nordstrom employees once their employment ends. Employees are considered unsecured creditors and will be last on a list of other creditors, such as major banks, despite being involved in a mass layoff.
• Normal business closures: Employees that have lost employment due to a business simply closing down would still be owed severance pay. Severance would be based on the years of service, age and position of employees. The size of a corporation does not affect or influence severance entitlements.