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Baaarrden · 01-09-2023, 11:04 AM

Apologies in advance if the formatting of this post is off in any way; the site is not loading properly for me for some reason today but I still wanted to make this post.

While it’s been a while since I have posted here, I do frequent the shadows of this site and often find myself scrolling and reading more than actively contributing as of late. With that being said, I know how far and wide the reach of this site is and how helpful the members have been in answering questions and providing assistance to people on wide array of topics in the past. My apologies if this topic has been addressed in the past; I am hoping someone might be able to help me out with some questions I have regarding an employment situation that I believe I may be heading towards in the not too distant future.

Background: The company I work for is a relatively small public company based here in Calgary. I have been working for them for just shy of 4 months and in the short period of time I have worked for them, we seem to be having growing cash flow issues that has resulted in late payment of wages in four of the six pay periods that I have been with the company for. While I was able to request and did receive my December 15th payroll, most people at the company have not been paid their wages since November 30th (meaning the company is currently one month behind for most individuals). We have been told that the Company is awaiting a significant financing transaction from overseas and that once received, the funds will be used to catch up on overdue payroll, expenses, etc., however I believe this is likely only a short-term band-aid and that the future of the Company is going to be a rocky one where similar cash flow issues are likely to persist.

I do have a general understanding of the employment rules in Alberta and that technically the Company is currently in violation of the Alberta Employment Standards that require employees be paid within 10 consecutive days after the end of a pay period. While I am not yet at the point where I feel it necessary to file a complaint, I am curious if anyone knows what the process looks like if a complaint were to be filed and where an employer is financially unable to make payroll for all of its employees? Perhaps also of importance to note is that the Company has employees based both in the United States and in a few different provinces in Canada.

Additionally, as it becomes increasingly apparent the direction this ship is headed, I was also curious to know what the laws are in Canada, and Alberta specifically, regarding where employees stand in the hierarchy of creditors should the company go bankrupt. The Company does have a fairly significant amount of debt, both secured and unsecured. Are employees entitled to a claim for all overdue wages or are you capped at a certain amount? Are you entitled to other aspects of your compensation such as unused vacation pay or other benefits that are offered by the Company as part of their policies (ie. allowances for which you have submitted the necessary documentation/receipts but have not yet been reimbursed for)? As an employee, do you fall above or below the other secured and unsecured creditors if the Company were to go bankrupt?

Clearly this is not a place or situation I want to find myself in if and when it does happen, particularly as the payroll liability grows. With that said, I obviously know the short answer from a ton of people will be to get out as soon as possible given the direction the Company is headed and so it’s probably important to note that I am already in the process of looking and applying elsewhere. In the situation where I do find alternative employment before the payroll liability can be settled and the Company is still unable to make payroll, is the best course of action to file a complaint with Alberta Employment Standards? How soon after filing a complaint can someone typically expect a resolution?

Any other advice that people have is greatly appreciated, including answers to questions that I may not have thought about.

Thanks in advance for all the answers and advice!

01-09-2023, 11:04 AM	#1
Baaarrden Scoring Winger Join Date: Jun 2010 Location: Red Mile Exp:	Employer Bankruptcy and Employee Rights Apologies in advance if the formatting of this post is off in any way; the site is not loading properly for me for some reason today but I still wanted to make this post. While it’s been a while since I have posted here, I do frequent the shadows of this site and often find myself scrolling and reading more than actively contributing as of late. With that being said, I know how far and wide the reach of this site is and how helpful the members have been in answering questions and providing assistance to people on wide array of topics in the past. My apologies if this topic has been addressed in the past; I am hoping someone might be able to help me out with some questions I have regarding an employment situation that I believe I may be heading towards in the not too distant future. Background: The company I work for is a relatively small public company based here in Calgary. I have been working for them for just shy of 4 months and in the short period of time I have worked for them, we seem to be having growing cash flow issues that has resulted in late payment of wages in four of the six pay periods that I have been with the company for. While I was able to request and did receive my December 15th payroll, most people at the company have not been paid their wages since November 30th (meaning the company is currently one month behind for most individuals). We have been told that the Company is awaiting a significant financing transaction from overseas and that once received, the funds will be used to catch up on overdue payroll, expenses, etc., however I believe this is likely only a short-term band-aid and that the future of the Company is going to be a rocky one where similar cash flow issues are likely to persist. I do have a general understanding of the employment rules in Alberta and that technically the Company is currently in violation of the Alberta Employment Standards that require employees be paid within 10 consecutive days after the end of a pay period. While I am not yet at the point where I feel it necessary to file a complaint, I am curious if anyone knows what the process looks like if a complaint were to be filed and where an employer is financially unable to make payroll for all of its employees? Perhaps also of importance to note is that the Company has employees based both in the United States and in a few different provinces in Canada. Additionally, as it becomes increasingly apparent the direction this ship is headed, I was also curious to know what the laws are in Canada, and Alberta specifically, regarding where employees stand in the hierarchy of creditors should the company go bankrupt. The Company does have a fairly significant amount of debt, both secured and unsecured. Are employees entitled to a claim for all overdue wages or are you capped at a certain amount? Are you entitled to other aspects of your compensation such as unused vacation pay or other benefits that are offered by the Company as part of their policies (ie. allowances for which you have submitted the necessary documentation/receipts but have not yet been reimbursed for)? As an employee, do you fall above or below the other secured and unsecured creditors if the Company were to go bankrupt? Clearly this is not a place or situation I want to find myself in if and when it does happen, particularly as the payroll liability grows. With that said, I obviously know the short answer from a ton of people will be to get out as soon as possible given the direction the Company is headed and so it’s probably important to note that I am already in the process of looking and applying elsewhere. In the situation where I do find alternative employment before the payroll liability can be settled and the Company is still unable to make payroll, is the best course of action to file a complaint with Alberta Employment Standards? How soon after filing a complaint can someone typically expect a resolution? Any other advice that people have is greatly appreciated, including answers to questions that I may not have thought about. Thanks in advance for all the answers and advice!