Nordstrom Bankruptcy and Employee Rights: CP24 Interviews Employment Lawyer

Interview Summary

Nordstrom has announced it is closing its doors across Canada. These closures will lead to thousands of unemployed Canadian employees. What can Nordstrom employees expect in terms of severance packages? Does a mass layoff ensure different entitlements and rights for both the employers and employees involved?

Lluc Cerda, an employment lawyer and Senior Associate at Samfiru Tumarkin LLP spoke to CP24 about the surprising announcement and what employees can expect in the coming weeks.

Interview Notes

• Store closings and bankruptcy filings: The manner in which Nordstrom is closing its doors across Canada is a form of bankruptcy. The Company Creditor Arrangement Act allows Nordstrom to restructure the debt it owes to its former employees. Nordstrom employees in Canada might not receive any severance entitlements as a result of these closures.
• Severance pay for Nordstrom employees: In a normal business closure, employees can expect up to twenty-four months of severance pay. Severance for most Canadian employees is based on their age, position and length of service. Unfortunately, in the event of a company filing for bankruptcy, terminated employees are unlikely to see much, if any, severance pay. Secure creditors receive payments from a company before any employees.
• State of the Canadian company and employee options: The recent announcement from Bed Bath and Beyond as well as other technology companies has led to concern for many employees across the country about mass layoffs.