I.e. the folks keeping their jobs get more money, while the folks losing their jobs get nothing.
Wth? How is it even legal to let someone go without paying severance? When I was let go, I had to be paid my severance (which was considerable) because that’s the law in Ontario.
In bankruptcy and receivership cases, cash-strapped companies can opt not to pay severance, forcing laid-off workers to make claims as unsecured creditors — which will likely result in pennies on the dollar.
which will likely result in pennies on the dollar.
Understand that this is the law right now. But laws can be changed. This absolutely should not be legal. These hardworking folks should not have to settle for “pennies on the dollar” when mgmt can still afford to pay out $3 mil of retention bonuses.
Remember Nortel? When the feds were talking about moving employees ahead of investors in the pecking order of who gets the last few bucks? Glad that happened.
I get that these are retention bonuses and such.
I.e. the folks keeping their jobs get more money, while the folks losing their jobs get nothing.
Wth? How is it even legal to let someone go without paying severance? When I was let go, I had to be paid my severance (which was considerable) because that’s the law in Ontario.
From the article:
Thanks for the hat tip.
Understand that this is the law right now. But laws can be changed. This absolutely should not be legal. These hardworking folks should not have to settle for “pennies on the dollar” when mgmt can still afford to pay out $3 mil of retention bonuses.
Yes. The laws can be fixed.
Workers should be at the front of the line legally dividing up company assets.
The job may be gone, but folks could at least drive home with a work truck or a set of office chairs.
When investors and leadership are considered kings, and workers are peons, this is what happens.
Remember Nortel? When the feds were talking about moving employees ahead of investors in the pecking order of who gets the last few bucks? Glad that happened.