Employment lawyer Chantel Goldsmith explains your employment rights when a company closes down, following news that all Carlton Cards and Papyrus stores in Canada will shut down in a matter of weeks.
Employees of the 76 Carlton Cards and Papyrus store locations in Canada have rights to severance pay, just as any other employee does when a business ceases operations (but does not declare bankruptcy or seek creditor protection).
Even in a situation where the company is closing a number of locations, employees are still owed severance pay. Their employment is being terminated without cause, and they are owed compensation.
• Termination without cause: [ Ссылка ]
Severance pay is calculated based on factors that include age, years of service, position, salary, and the ability to find new employment.
• How to calculate severance pay: [ Ссылка ]
It is important to know your employment rights when a company closes. In the case of Carlton Cards and Papyrus, employees have been given advance notice of when their positions will be eliminated, weeks before the termination date. They have received what is called "working notice".
Chantel, partner at Samfiru Tumarkin LLP, explains that an employee's notice of termination can include both pay in lieu of notice (severance pay or termination pay) and working notice (advance notice of termination, during which time you are required to work).
Read more about your employment rights when a company closes, specifically where Carlton Cards and Papyrus employees are concerned, here: [ Ссылка ]
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► Calculate the amount of severance pay your are owed with the Severance Pay Calculator here: [ Ссылка ]
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