TORONTO — Sears Canada's plan to pay out millions in bonuses to keep key staff on board while not paying severance to laid-off workers is being met with shock and disbelief.

Ken Eady, who spent 30 years at Sears before retiring, said news of the bonuses was just the latest development in a terrible situation. "To see people let go after 30 or 40 years of service, without any reasonable notice, or without any severance, and then to see people being paid what might be millions of dollars in bonuses for staying seems so out of balance and so unreasonable that it's beyond the pale," said Eady, who now works to protect the pensions of retired Sears employees at the independent SCRG retiree association. Sears Canada got court permission on Thursday to pay $9.2 million in retention bonuses as part of a compromise with retired employees that will see the company continue making some benefit and pension payments until Sept. 30. The retailer had initially asked the court for permission to immediately halt payments for pension, health and dental benefits for laid off employees, retirees and surviving spouses due to a severe cash crunch.

Andy Clark / Reuters A customer enters the Sears store in North Vancouver, British Columbia February 23, 2011.

Justice Glenn Hainey wrote in his approval of the $9.2 million in payments that the details should remain confidential. But the company estimated when it sought court protection in June that it would need to pay $7.6 million for key employees at head office and $1.6 million for managers of stores that are scheduled to be closed under the restructuring. Sears Canada spokesman Joel Shaffer said the payments are common during the creditor protection process, and are designed to keep key employees motivated with performance indicators and incentives to successfully close stores. He said the payments are designed to support the best possible outcome for the business and stakeholders, and that the situation could worsen without them.

Bloomberg via Getty Images A shopper holds a Sears Canada Inc. bag for a photograph inside a mall in Toronto, Ontario, Canada, on Thursday, June 22, 2017. Canadian retailer Sears Canada Inc. is seeking creditor protection as it works to restructure the business.