Teal-Jones Group: Severance Packages

Teal-Jones Group is a Canadian forestry company established in 1946 and headquartered in Surrey, British Columbia. Teal-Jones is involved in the entire timber process from harvesting to the production of finished wood products. This includes sawmilling, as well as the manufacture of value-added wood products.

Teal-Jones employs over 1,000 individuals across its operations. The employees at Teal-Jones hold a variety of roles, including forestry workers, mill operators, administrative staff, engineers, and sales professionals.

Update: Teal-Jones filed for creditor protection on Wednesday, April 24, 2024 due its inability to pay its bills. B.C. Supreme Court granted the company a stay of insolvency proceedings under the Companies’ Creditors Arrangement Act (CCAA), giving Teal-Jones a chance to gather the funds it needs.

LEARN MORE:
• Employee rights when their employer goes bankrupt

Severance pay for Teal-Jones employees

When a company restructures or declares bankruptcy, it’s still responsible for providing workers with unpaid wages and severance packages.

Therefore, Teal-Jones owes full severance pay to non-unionized employees who lose their jobs. However, because employees are classified as ‘unsecured creditors’ during restructuring or bankruptcy in Canada, the reality is that Teal-Jones staff will likely receive little to no severance pay.

• Why: Unsecured creditors are lower in priority for repayment, behind secured creditors like banks and government tax claims. Often, by the time secured creditors are paid, there are not enough funds left to fully pay the employees.

The Sears Act

Championed by Samfiru Tumarkin LLP, the Sears Act focuses on better protecting employees during a company’s restructuring or bankruptcy.

It aims to make sure employees get treated as secured creditors, so they can be paid their severance and unpaid wages first, ahead of unsecured creditors.

When should I contact an employment lawyer?

You should contact the employment lawyers at Samfiru Tumarkin LLP ONLY when you lose your job or your employer permanently closes the company and one of the following happens:

• Your employer doesn’t file for restructuring or bankruptcy.
• Your employer claims they will file for bankruptcy through the BIA or CCAA, but doesn’t actually follow through.

In these scenarios, non-unionized employees are still legally entitled to a full severance package, which can be as much as 24 months’ pay.

This is where an employment lawyer from Samfiru Tumarkin LLP can be invaluable. We can help you understand your rights and properly navigate the legal process to maximize your compensation.

Don’t do this alone. Contact Samfiru Tumarkin LLP for expert guidance and support in these unique situations.

Our employment lawyers in Ontario, Alberta, and B.C. have helped tens of thousands of individuals enforce their rights.

If you are a non-unionized worker who needs help with an employment issue, contact us or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer.