bankruptcy

WAGE EARNER PROTECTION PROGRAM

Workers of companies that have gone bankrupt or under receivership, may qualify to unpaid wages, vacation pay, and termination/severance pay.

Wage Earner Protection Program (WEPP)

WEPP is a program that was established by the Federal Government in July 2008.  WEPP provides employees of bankrupt employers, or employers subject to a receivership, with the ability to recover up to approximately $3,900 (2016) for unpaid wages, vacation pay, pay in-lieu of notice, termination pay and severance pay.

It is the Trustee’s or Receiver’s obligation to advise the employees of their rights under WEPP and to make the calculations of the amounts due to employees.  The Trustee or Receiver reports these figures to Service Canada and the employees file their claims with Service Canada who makes the necessary payments directly to the employees.  Service Canada may be able to recover some of the funds paid to employees from the assets of the company that is bankrupt or subject to a receivership.

The claims of employees for unpaid compensation and vacation pay earned in the six months preceding bankruptcy or the appointment of a receiver form a secured charge on the cash, accounts receivable and inventory of the company, in priority to the interests of secured creditors.

paul moffett

Hi, I'm Paul and I am a Licensed Insolvency Trustee. Contact me to arrange an initial consultation to assess your company’s situation. I'm here to help!