Employees Get Nearly $900,000 Payout From Bankrupt Employer

Archived Release

Employees Get Nearly $900,000 Payout From Bankrupt Employer

Ontario Government's Proactive Approach Pays Off For Former Employees TORONTO, May 3 - More than 300 former employees of a bankrupt business are collecting almost $900,000 in severance pay owed to them with the assistance of the Ministry of Labour's new proactive approach to resolving insolvency cases, said Labour Minister Chris Bentley. "This payout speaks volumes about the government's proactive results- oriented approach to get money that's owed into workers' hands," said Bentley. "Ministry of Labour staff are making every effort to get employees money they are owed in difficult situations such as bankruptcies and insolvencies." Altogether, 306 former employees of Ajax Precision Manufacturing are getting $876,802.75 in severance pay under the Employment Standards Act, 2000. The company was under creditor protection and was eventually forced into bankruptcy. The recovery of money came about in part because ministry staff proactively conducted a full audit covering all employees. The audit determined which employees are owed money and how much they are owed. The employment standards officer who was assigned to this case worked with the court-appointed trustee, BDO Dunwoody, for about a year. Without this commitment of ministry time and resources, the former employees may not have seen any of the severance pay they were legally entitled to receive. This payout is the largest obtained by the ministry's Centralized Insolvency and Collection Unit, which was set up to improve the level of service and improve the recovery of monies owed to employees. It has collected $3.67 million owing to employees in about 20 months. This is in addition to money recovered by the ministry's collection agency. "We are absolutely determined to protect vulnerable workers while ensuring employers have the information they need to comply with their employment standards obligations," said Bentley. Disponible en fran├žais www.gov.on.ca/lab/For further information: Jennifer Norman, Minister's Office, (416) 327-3748; Belinda Sutton, Ministry of Labour, (416) 326-7405