When a retailer faces bankruptcy, employees often think they’ve lost all leverage. That’s not true. Canadian law protects workers even when companies struggle financially.
What You’re Entitled To
If Eddie Bauer terminates your employment, you’re owed:
- Severance pay or proper notice based on your service
- Outstanding wages for all hours worked
- Earned vacation pay
- Commissions or bonuses earned
- Benefits during your notice period
Financial problems don’t eliminate these obligations.
Getting Paid When the Company Can't Pay
Unpaid wages are a major concern during retail bankruptcies. The federal Wage Earner Protection Program (WEPP) can help recover:
- Up to $8,500 for unpaid wages
- Vacation pay
- Limited termination and severance pay
Apply within 56 days of bankruptcy through canada.ca/wage-earner-protection-program or call 1-866-864-9622.
Store Closures and Your Severance
Eddie Bauer closing multiple stores triggers mass termination rules. In Ontario, companies must provide extra notice when laying off 50+ employees at once.
But here’s what matters more: Your individual entitlement likely exceeds statutory minimums. An employee with 5-10 years at Eddie Bauer could deserve 6-12 months of severance, not just weeks.
What to Do Right Now
Immediate Actions
- Document everything – Save pay stubs, schedules, and all communications
- Calculate what you’re owed – Unpaid wages, vacation, hours worked
- Don’t sign anything – Eddie Bauer may ask you to waive your rights
- Apply for EI immediately – Don’t wait
- File WEPP if needed – If bankruptcy is declared
Before Accepting Any Severance Offer
Retail workers often accept the first offer without realizing it’s inadequate. Have a lawyer review it first—most offer free consultations.
Common Questions
Will I get my last paycheck? You should. If not, file with Employment Standards or apply to WEPP when bankruptcy proceedings begin.
What happens to my benefits? They typically end at termination, but you’re entitled to coverage during any notice period you should have received.
Can I still pursue a claim? Yes. Your claim becomes part of bankruptcy proceedings. While you may not recover everything, you have priority status over most other creditors.
Should I accept their severance offer? Not without getting it reviewed. Initial bankruptcy offers are usually minimal.
Employee Priority in Bankruptcy
Canadian law gives employees special status:
- Wage claims have priority over most creditors
- WEPP provides federal insurance for unpaid wages
- Provincial employment standards still apply
However, these protections have limits, which is why acting quickly matters.
When You Need Legal Help
Contact an employment lawyer if:
- You’ve worked at Eddie Bauer for 2+ years
- You’re owed significant unpaid wages
- The severance offer seems low
- You’re being pressured to sign releases
- You’re uncertain about your rights
Many lawyers work on contingency for wrongful dismissal cases—you only pay if they recover additional compensation.
Time-Sensitive Deadlines
Don’t delay protecting your rights:
- WEPP applications: 56 days from bankruptcy
- Employment Standards complaints: 2 years in Ontario
- Wrongful dismissal claims: 2 years in Ontario
Evidence disappears and companies dissolve quickly. The sooner you act, the better your chances of recovery.
You're Not Alone
Retail bankruptcies affect hundreds of workers across multiple locations. Connect with former colleagues to share information about offers, WEPP applications, and legal options.
Bankruptcy doesn’t mean you have no recourse. Many retail employees successfully recover unpaid wages and negotiate better severance despite employer financial difficulties.
