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What do I do if the company ceases operations and cannot pay my severance?

In case of company closure and non-payment of severance, gather documents, seek labor and immigration guidance to protect your rights and maintain your legal status in the U.S.

Written by

Victoria Harper

Editor-in-Chief

Updated on September 2, 2025
2 min read
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If you find yourself in this situation, it is important to understand that, beyond labor issues, your immigration status may be affected, especially if you are in the United States on a TN visa, which is directly linked to your employment. Initially, gather all documentation related to your employment relationship, such as your employment contract, salary receipts, and any official communication regarding the continuation or closure of the company’s activities. This will serve as the basis to fully understand the agreed terms and what can be legally or administratively demanded.

In cases of business closure and non-payment of severance, the first step is to seek guidance from the labor department or agency of the state where you are located. Each jurisdiction has specific procedures for situations like this, and access to these services can help you pursue appropriate measures against the company.

It is essential to highlight that, if you are in the United States on a TN visa, your permission to stay is tied to your employment. Therefore, abrupt changes in your employment relationship can have direct impacts on your immigration status, making it even more crucial to have specialized support to evaluate the alternatives and deadlines available for regularization.

Additionally, it is advisable to consult a professional or company specialized in immigration and labor matters. These specialists can guide you on how to proceed without compromising your status in the United States and on possible legal actions to claim your labor rights, always in accordance with the country’s current laws.

Remember to keep all documentation organized and do not get involved in miracle-solution proposals or marketing campaigns promising quick and easy results, as the complexity of these issues requires careful and well-founded handling.

Finally, always comply with U.S. immigration laws and avoid acting on your own without proper guidance. Seek reliable sources and recognized specialists in the field to avoid unnecessary risks to your situation. In this way, you will be better prepared to face challenges both in the labor and immigration areas.

Learn more about TN Visa

Eligible countries
Canada & Mexico (USMCA)
Duration
3 years
Extension
Unlimited (3 years each)
Processing
At the border or consulate
All about TN Visa
Victoria Harper

Editor-in-Chief

Meet the author

Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.

Victoria's tips

What do I do if the company ceases operations and cannot pay my severance?

In case of company closure and non-payment of severance, gather documents, seek labor and immigration guidance to protect your rights and maintain your legal status in the U.S.

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