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Debra, Lawyer
Category: Canada Law
Satisfied Customers: 101041
Experience:  Lawyer
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The Company I work potentially going to go into

Customer Question

Hello The Company I work for is potentially going to go into CCAA or even into bankruptcy. It is a Canadian Company and I am employed in BC. I have an employment contract that has a clause in it for termination by the Company, which has it that if the
company terminates my employment, I will be paid 6 months of my base salary. It does not specify for the nature of the reason of the termination, other than we are talking about it not being with cause. Under CCAA or Bankruptcy, will the company be obligated
to make that payment to me or am I pretty much out of luck? Would I just get similar protection as any other employee under the "Wage Earners Protection Program"? For that matter, under CCAA / Bankruptcy, could the Company give me any different treatment than
any of the regular employees who do not have a termination payment clause in their employment contracts or would I have to be given the same treatment? Thanks
Submitted: 2 years ago.
Category: Canada Law
Expert:  Debra replied 2 years ago.
You will be out of luck in terms of termination pay. You will be treated as any other creditor. The priority for wages is for unpaid wages already earned and not for termination pay.
Customer: replied 2 years ago.
Thank you
Expert:  Debra replied 2 years ago.
You are very welcome.