{"id":45622,"date":"2026-06-22T08:00:06","date_gmt":"2026-06-22T12:00:06","guid":{"rendered":"https:\/\/ginsberg-gingras.com\/?p=45622"},"modified":"2026-06-10T10:50:31","modified_gmt":"2026-06-10T14:50:31","slug":"my-employer-is-closing-its-doors-what-are-my-rights","status":"publish","type":"post","link":"https:\/\/ginsberg-gingras.com\/en\/my-employer-is-closing-its-doors-what-are-my-rights\/","title":{"rendered":"My employer is closing its doors: what are my rights?"},"content":{"rendered":"

Plant closures, restructurings, bankruptcies… What should you do when your job disappears overnight?<\/strong><\/h2>\n

In recent months, several companies have announced closures or major financial difficulties. For affected workers, it is a shock. And very often, the same question comes up: do I have rights? Am I going to lose everything I am owed?<\/p>\n

The answer is no. The law protects you. Here is what you need to know.<\/p>\n

When the employer closes or carries out a collective dismissal<\/strong><\/h2>\n

Whether your employer closes a department or the entire establishment, it has legal obligations toward you. A collective dismissal occurs when a termination of employment affects a certain number of employees at the same establishment over a short period, for economic or technological reasons.<\/p>\n

In this case, your employer must provide you with an individual notice of termination based on your length of service. The more years of service you have, the longer this notice must be. If the employer does not respect this notice period, it must pay you compensation in lieu of notice, meaning it must pay you for the weeks of notice it did not provide.<\/p>\n

These rules vary by province. In all cases, the minimum standards are set by law, and your employer cannot depart from them, even during a financial crisis.<\/p>\n

When the employer goes bankrupt<\/strong><\/h2>\n

Bankruptcy does not mean you lose everything you are owed. When a company goes bankrupt or becomes insolvent, a Licensed Insolvency Trustee is appointed. Their role is to manage the company\u2019s assets and ensure that creditors, including you, receive what they are owed to the extent possible.<\/p>\n

As a worker who is owed money, you are legally considered a creditor of your employer. The trustee must send you a notice of bankruptcy and a proof of claim form, which allows you to officially declare the amounts you are owed.<\/p>\n

You can claim unpaid wages, vacation pay, unpaid statutory holidays and severance pay. By filing this proof of claim, you may also participate in creditors\u2019 meetings and be heard on important decisions related to the bankruptcy.<\/p>\n

The Wage Earner Protection Program: concrete federal assistance<\/strong><\/h2>\n

Even with a proof of claim in hand, the company may no longer have enough money to pay its employees. That is when the federal government steps in.<\/p>\n

The Wage Earner Protection Program (WEPP), administered by Service Canada, exists precisely for this situation. It allows workers to recover part of the amounts owed to them, including wages, commissions, vacation pay and severance pay, when their employer is bankrupt or in receivership. The maximum payment in 2026 is $9,275 (according to Service Canada).<\/p>\n

A strict deadline applies: you must submit your application to Service Canada within 56 days of the official date of the bankruptcy or receivership. After that deadline, you may lose this right. Do not delay.<\/p>\n

What about restructuring (BIA or CCAA)?<\/strong><\/h2>\n

Sometimes, a company tries to avoid bankruptcy by proposing an arrangement to its creditors. This is known as restructuring. Two federal laws govern this process across Canada: the Bankruptcy and Insolvency Act (BIA) and the Companies\u2019 Creditors Arrangement Act (CCAA).<\/p>\n

Good news: since November 2021, the WEPP has been expanded. It now covers not only bankruptcies and receiverships, but also restructuring proceedings under Division I of the BIA, including a notice of intention to make a proposal, as well as certain proceedings under the CCAA. To be eligible in these cases, the employer must have terminated the employment of all its employees in Canada, except those retained to wind down operations.<\/p>\n

The eligibility period covers the six months preceding the start of the restructuring or bankruptcy proceeding. If the restructuring fails and leads to bankruptcy, this protection period goes back to the very beginning of the process.<\/p>\n

In summary: your steps if you are affected<\/strong><\/h2>\n

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  1. Keep all your documents: pay stubs, employment contract, records of employment.<\/li>\n
  2. Contact your province\u2019s labour authorities to understand your rights regarding unpaid amounts.<\/li>\n
  3. Submit a proof of claim to the trustee responsible for the file.<\/li>\n
  4. Apply for the WEPP through Service Canada within 56 days.<\/li>\n
  5. Consult a Licensed Insolvency Trustee to obtain advice tailored to your situation.<\/li>\n<\/ol>\n

    In conclusion<\/em><\/h2>\n

    Losing your job because of a bankruptcy or closure is difficult. But you are not alone. Protections exist and professionals can guide you through each step. Do not hesitate to contact Ginsberg Gingras – we are here to help.<\/p>\n

    This article is provided for information purposes only and does not constitute legal advice. For any personal situation, consult a qualified professional.<\/p>\n

     <\/p>\n

    If you are having difficulty making ends meet after a layoff or for any other reason, it is important not to wait until the situation gets worse. We can help you understand your options and find a solution suited to your financial reality.<\/p>\n

    If you are still experiencing difficulties despite certain changes in your habits, know that we are here to help you regain control of your finances.<\/p>\n

    If you feel that you no longer have control over your financial situation, there is no shame in consulting a Licensed Insolvency Trustee who can support you and help you see your future beyond debt!<\/p>\n

    Several ways to contact the Ginsberg Gingras team:<\/p>\n