Former Hudson’s Bay employees won’t get severance: Lior Samfiru on 640 Toronto

Interview Summary

Hudson’s Bay has filed for creditor protection and begun liquidating all of its stores. While executives and managers have been told they will still receive their bonuses, the rest of the retail department’s employees will be exempt from compensation. Do these employees have any options?

Lior Samfiru, an Ontario employment lawyer and co-founding Partner at Samfiru Tumarkin LLP, joined 640 Toronto with Davelle Morrison to discuss whether Hudson’s Bay employees have any entitlements.

Interview Notes

• Retention bonuses but no severance pay: Samfiru noted the problem with bankruptcy and severance pay laws. “The way our legal system works in this situation is that employees are deprived of their rights; they’re in the back of the line of secure creditors.” Employers can conduct business in the manner they see fit to liquidate.
• Hardship fund for employees: “It is essentially a pot of money that can be dispersed among employees who have lost entitlements,” said Samfiru. He believes this is a PR move by the Bay. “Anything that goes into this fund represents pennies on the dollar for what employees are actually entitled to.”
• Legal representation: Samfiru explained that an employment lawyer cannot do much for employees in this situation. “The system says that our employment laws and rights are suspended if not eliminated,” said Samfiru.
• Pension for HBC employees: “Some of the employees, those who are unionized, have a pension plan. This does not go anywhere, and they don’t lose their rights to this,” Samfiru explained.
• Advice for terminated employees: Samfiru noted that for former employees in a non-bankruptcy situation, you should ensure you receive your entitlements. “Whether it is a small employer or a large employer, in most cases, when someone is let go, they are not offered what their real entitlements are.” Samfiru advised that it is vital for terminated employees to seek legal advice.

Related Resources

For further insights and discussions related to employee rights, explore the following resources:

• Bankruptcy guide for employees in Canada
• Sears Act