As labour officials from Ontario and Quebec probe the abrupt closure of a U.S.-based call centre's Canadian operations, the City of Nashville has terminated a deal to help bring the company to Tennessee.

Ontario's Ministry of Labour is investigating the sudden elimination of hundreds of jobs in Oshawa after IQT Solutions closed its doors there without notice last Friday.

The company unexpectedly declared bankruptcy in Canada last week, and promptly shut down its call centres in Oshawa, Laval and Trois-Rivieres, Que.

Nearly 1,200 workers were escorted from the offices without notice on Friday and have not received their final paycheques.

IQT's Canadian job losses come weeks after the company said it was opening a call centre in the business' headquarters in Nashville, Tennessee.

The centre had been expected to create 900 new jobs in Nashville within five years.

The City of Nashville announced on Tuesday that a deal to pay IQT $1.6 million in incentives for creating news jobs in the city had been killed.

The announcement came after Mayor Karl Dean demanded IQT explain the reasons behind the Canadian closures. City officials said they were disappointed and dismayed by the way Canadian employees were treated.

Officials added that after speaking to IQT officials, they were no longer dealing with the New York-based company.

"We are dismayed about what happened in Canada and don't think workers anywhere should be treated that way," city official Matt Wiltshire said in a statement.

"We are no longer in conversations with IQT regarding locating their operations here. We spoke with the company last night, and it appears unlikely IQT will move forward with its proposed operations in Nashville."

IQT has not spoken with the media since the closures on Friday and it's not clear if they intend to file for bankruptcy.

Scorned Oshawa workers say they aren't sure whether they will be paid for their final two weeks of work. They also argue that the company hasn't given them the paperwork they need to apply for employment insurance.

Quebec's labour standards board is also investigating the Laval and Trois-Rivieres closures. Labour Minister Lise Theriault and Employment Minister Julie Boulet were to met with 140 workers from the IQT operation in Trois-Rivieres on Tuesday.

Boulet said the workers have options.

"We have three companies that have expressed an interest in adding this type of workforce," Boulet said, saying laid-off employees should put their names forward.

"We'll do everything we can to pair them with employers that meet their profile."

The Quebec board has suggested it could pursue legal action because the company did not pay workers outstanding wages and other money owed under Quebec layoff laws.

Labour laws generally require employers to give two weeks' notice of a layoff and a minimum of four per cent of salary earned in the last year, generally considered vacation pay.

Meanwhile, Ontario Labour Minister Charles Sousa wrote letters to federal Labour Minister Lisa Raitt and Nashville Mayor Karl Dean about the situation.

"We're still trying to determine what happened to this company," Sousa said.

IQT is also a subcontractor to Bell Canada, a company that owns CTV. Bell confirmed Monday that they have ended their contract with the call centre business.

"We learned Friday morning that they'd closed their doors…Bell is growing its customer service and other teams and we will accommodate IQT employees where we can," Bell Canada said in a statement.