Mr. Matt Dooley at the Industry, Science and Technology Committee

On February 15th, 2011. See this statement in context.

February 15th, 2011 / 3:45 p.m.

Senior Project Leader, Corporate and Insolvency Law Policy and Internal Trade, Department of Industry

These two provisions refer to the payment of severance and termination pay in the event of either the bankruptcy of a company or the company coming under a receivership.

As the bill now stands, it will put the severance and termination pay due to employees ahead of essentially all secured creditors. You will have the full amount of severance and termination owed now ranking ahead of secured creditors. I would point out at the same time that unpaid wages are given a super-priority as well, but up to a cap of $2,000.

So here you'll see the full amount of severance and termination being paid ahead of secured creditors.

See context to find out what was said next.