Thousands of Hudson’s Bay layoffs: Alex Lucifero with CTV News

Interview Summary

As Hudson’s Bay is set to close its doors in a few days, over 80 percent of its workforce seems to be braced to lose their jobs. The company has declared that the terminated employee will not receive any severance pay, despite many years of service for some. The lack of compensation offered, tied to the company’s creditor protection filing, has left staff with few options.

Alex Lucifero, an Ontario employment lawyer and Partner at Samfiru Tumarkin LLP, spoke with CTV News Ottawa to discuss whether employees hope to receive compensation.

Interview Notes

• Employee rights during a layoff: Lucifero commented that this is a very difficult situation for employees. “In a bankruptcy proceeding, employees become unsecured creditors and are at the back of the line when it comes to severance entitlements.”
• Advocating for employees: “We proposed years ago something called the ‘Sears Act’, and since then, we’ve tried to advocate for employees to receive something in these circumstances. Without legislation, employees are left with no rights.”
• Rights to severance pay: Lucifero explained that some Hudson’s Bay employees might be entitled to severance. “If there is some money left over, there may be some mechanism by which they can collect some severance,” said Lucifero. “Even if they do, it will be pennies on the dollar, particularly for long-service employees.”
• Business closures: Lucifero pointed out there is a distinct difference between a bankruptcy filing and a company simply shutting down. “When a company decides to cease operations, that is not a bankruptcy. Employees will be owed their full severance entitlements.”

Related Resources

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

• Guide to bankruptcy for Canadian employees