Comments on: Do I have rights as an employee when my company goes bankrupt? http://www.thickenmywallet.com/blog/wp/2009/10/15/do-i-have-rights-as-an-employee-when-my-company-goes-bankrupt/ Everything to do with thickening your wallet Wed, 01 Feb 2012 15:44:00 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Frequently asked severance questions - Thicken My Wallet http://www.thickenmywallet.com/blog/wp/2009/10/15/do-i-have-rights-as-an-employee-when-my-company-goes-bankrupt/comment-page-1/#comment-24952 Frequently asked severance questions - Thicken My Wallet Thu, 01 Dec 2011 09:01:30 +0000 http://www.thickenmywallet.com/blog/wp/?p=1257#comment-24952 [...] from employees who worked at now bankrupt employers. I have previously posted on the topic of employee rights when their employers go bankrupt.  The good news is that, in Canada at least, there is some relief over and above the lenders in [...] [...] from employees who worked at now bankrupt employers. I have previously posted on the topic of employee rights when their employers go bankrupt.  The good news is that, in Canada at least, there is some relief over and above the lenders in [...]

]]> By: erin narvaez http://www.thickenmywallet.com/blog/wp/2009/10/15/do-i-have-rights-as-an-employee-when-my-company-goes-bankrupt/comment-page-1/#comment-23664 erin narvaez Thu, 23 Dec 2010 19:18:29 +0000 http://www.thickenmywallet.com/blog/wp/?p=1257#comment-23664 my company is planning on going bankrupt and I have done 2 jobs for them since nov w/o pay. who should I contact and how should I go about getting the money. I have sent my invoices to them that the job is completed and spoken to them but get the run around. Please direct me as to what I need to do. Thankyou, ERIN my company is planning on going bankrupt and I have done 2 jobs for them since nov w/o pay. who should I contact and how should I go about getting the money. I have sent my invoices to them that the job is completed and spoken to them but get the run around. Please direct me as to what I need to do. Thankyou, ERIN

]]> By: Nancy Kosokowksy http://www.thickenmywallet.com/blog/wp/2009/10/15/do-i-have-rights-as-an-employee-when-my-company-goes-bankrupt/comment-page-1/#comment-21035 Nancy Kosokowksy Mon, 12 Apr 2010 16:15:36 +0000 http://www.thickenmywallet.com/blog/wp/?p=1257#comment-21035 I am in a quandary the company I worked for went into bankruptcy on June 8 of 08, WEPP started the beginning of July. What recourse do I have for getting any of the 6,000 I am owed? Any help would be appreciated. I am in a quandary the company I worked for went into bankruptcy on June 8 of 08, WEPP started the beginning of July. What recourse do I have for getting any of the 6,000 I am owed? Any help would be appreciated.

]]> By: admin http://www.thickenmywallet.com/blog/wp/2009/10/15/do-i-have-rights-as-an-employee-when-my-company-goes-bankrupt/comment-page-1/#comment-20405 admin Tue, 02 Feb 2010 22:50:08 +0000 http://www.thickenmywallet.com/blog/wp/?p=1257#comment-20405 If your question is whether you should withdraw from your RRSP to pay off debt, please do remember that RRSP are subject to withholding and then taxed so you will not end up on a dollar for dollar basis of what you have put in. Please consult an accountant for more details. Good luck. If your question is whether you should withdraw from your RRSP to pay off debt, please do remember that RRSP are subject to withholding and then taxed so you will not end up on a dollar for dollar basis of what you have put in.

Please consult an accountant for more details. Good luck.

]]> By: Profound Questions http://www.thickenmywallet.com/blog/wp/2009/10/15/do-i-have-rights-as-an-employee-when-my-company-goes-bankrupt/comment-page-1/#comment-20392 Profound Questions Mon, 01 Feb 2010 19:36:40 +0000 http://www.thickenmywallet.com/blog/wp/?p=1257#comment-20392 I would like to know, in your opinion, if the company enters into bankruptcy, should the individual employee cash RRSP's early to cover all debts? This means that the debt ratio for the individual would be zero, RRSP's cover all debt. I would like to know, in your opinion, if the company enters into bankruptcy, should the individual employee cash RRSP’s early to cover all debts?

This means that the debt ratio for the individual would be zero, RRSP’s cover all debt.

]]> By: John D http://www.thickenmywallet.com/blog/wp/2009/10/15/do-i-have-rights-as-an-employee-when-my-company-goes-bankrupt/comment-page-1/#comment-19769 John D Tue, 20 Oct 2009 01:27:11 +0000 http://www.thickenmywallet.com/blog/wp/?p=1257#comment-19769 Agreed. I was wondering if you had any comments on the legal aspects but I understand that it depends on the context of the situation. There should be a better regulator. Nortel pensioners based in the US got a government bailout, while the government sits on their hands in Canada. Quick comment - extra payments to the DB plans does not necessarily reduce earnings. Accounting income factors in the expected shortfall of the plan to some degree under the corridor method. Eventually the shortfall hits net income. Agreed. I was wondering if you had any comments on the legal aspects but I understand that it depends on the context of the situation.

There should be a better regulator. Nortel pensioners based in the US got a government bailout, while the government sits on their hands in Canada.

Quick comment – extra payments to the DB plans does not necessarily reduce earnings. Accounting income factors in the expected shortfall of the plan to some degree under the corridor method. Eventually the shortfall hits net income.

]]> By: admin http://www.thickenmywallet.com/blog/wp/2009/10/15/do-i-have-rights-as-an-employee-when-my-company-goes-bankrupt/comment-page-1/#comment-19764 admin Mon, 19 Oct 2009 03:54:03 +0000 http://www.thickenmywallet.com/blog/wp/?p=1257#comment-19764 Pension plans tend to be very context specific. Generally, if there is no shortfall in the plan, the employees are relatively safe even during bankruptcy. The question always arises if there is a shortfall in a defined benefit plan. At that point, no one (creditors, shareholders, government) really wants to make up the shortfall if the assets or sold. Without speaking to any specific situation, there should be better regulator over-sight to make sure the shortfalls do not become huge during good times. Shareholders may not like that very much since it reduces earnings but it comes down to whether you believe that employees are just as important stakeholders as shareholders. Pension plans tend to be very context specific. Generally, if there is no shortfall in the plan, the employees are relatively safe even during bankruptcy. The question always arises if there is a shortfall in a defined benefit plan. At that point, no one (creditors, shareholders, government) really wants to make up the shortfall if the assets or sold.

Without speaking to any specific situation, there should be better regulator over-sight to make sure the shortfalls do not become huge during good times. Shareholders may not like that very much since it reduces earnings but it comes down to whether you believe that employees are just as important stakeholders as shareholders.

]]> By: John D http://www.thickenmywallet.com/blog/wp/2009/10/15/do-i-have-rights-as-an-employee-when-my-company-goes-bankrupt/comment-page-1/#comment-19760 John D Sun, 18 Oct 2009 20:41:49 +0000 http://www.thickenmywallet.com/blog/wp/?p=1257#comment-19760 Do you have any comments on pension benefits for employees of Ontario-based companies that are going bankrupt(i.e. Nortel's retirees, etc) Do you have any comments on pension benefits for employees of Ontario-based companies that are going bankrupt(i.e. Nortel’s retirees, etc)

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