The province’s Department of Labour and Advanced Education has wrapped up its investigation into the sudden closure of ServiCom, and determined that former employees of the Sydney, N.S., call centre are owed pay.
Nearly 700 employees lost their jobs three weeks before Christmas last year, when ServiCom suddenly closed after weeks of pay delays and a bankruptcy protection filing by its parent company in the United States.
Marlowe Companies Inc. (MCI) bought the assets of ServiCom during an auction a few days later, and the call centre has since reopened.
The province now says it will make a court application for a bankruptcy order against ServiCom in Canada, through the director of labour standards and a former employee co-applicant.
The province notes that if a bankruptcy order is made by the court, it will allow former employees to apply to the federal Wage Earner Protection Program. Under the program, each employee may be eligible to recover up to $6,600.
“We continue to do everything we can to recover wages owed, outstanding vacation pay and pay in lieu of notice of termination for former ServiCom employees,” said Business Minister Geoff MacLellan in a news release.
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“Initiating a Canadian bankruptcy proceeding is the best course of action.”
If a bankruptcy order is made, a trustee will be appointed and will help employees to access the program. The federal government would then determine how much each claimant can receive.
The province notes that the bankruptcy process not affect the current operations by MCI.
Affected employees are being sent correspondence this week that will outline the investigation and specify how much is owed to them.
Anyone who has not heard from the province by March 12 can email labourstandards.servicom@novascotia.ca or call 902-424-8127 by March 15.
Former employees are asked to include their full name, current mailing address, phone number, dates worked for ServiCom and their ServiCom employee identification number.
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