Labour
Bankruptcy and Employees
Wage Earner Protection Program
The Wage Earner Protection Program (WEPP) was developed by the federal government to protect workers when employers become bankrupt or are subject to receivership.
Under the WEPP, employees are entitled to a payment of up to approximately $3,323.00 from the federal government for unpaid wages, vacation pay, termination pay, and severance pay the employee earned or became entitled to in the last six months before a bankruptcy or receivership.
All inquiries regarding the WEPP should be addressed to the Federal Government through Service Canada toll free at 1–866–683–6516 (TTY 1–800–926–9105). Additional information may be found on the Service Canada Wage Earner Protection Program website.
How is WEPP different from Employment Standards?
WEPP is a separate, federally regulated program to compensate employees when their employer is subject to a formal bankruptcy or receivership. Employment Standards is a provincially regulated program that enforces the Prince Edward Island Employment Standards Act.
What will WEPP compensate employees for?
WEPP will cover unpaid wages, vacation pay, termination pay, and severance pay, up to a maximum of approximately $3,200.00, that an employee earned or became entitled to in the last six months before a formal bankruptcy or receivership.
When did the WEPP come into effect?
WEPP came into effect on July 7, 2008. It applies only to formal bankruptcies and receiverships that occurred from July 7, 2008 onward.
The WEPP did not cover termination pay or severance pay when it originally came into force. It began to cover those entitlements effective March 12, 2009, retroactive to January 27, 2009, where the entitlements arose no more than six months prior to the date of bankruptcy or receivership.
Who is eligible to apply?
Any employee who is owed wages or vacation pay from the period within six months prior to the bankruptcy or receivership of their employer, and whose employer went formally bankrupt or went into receivership on or after July 7, 2008.
Employees are also eligible for a WEPP payment with respect to termination pay or severance pay if their employer went formally bankrupt or was subject to receivership on or after January 27, 2009. As with unpaid wages and vacation pay, WEPP only covers unpaid termination pay and severance pay that an employee was entitled to in the last six months before a bankruptcy or receivership. Employees should contact Service Canada if they are unsure about their eligibility.
If I think I am eligible for a payment received through WEPP, what do I do?
The trustee in bankruptcy or the court–appointed receiver acting for the employer will provide you with information about the WEPP. You should file a proof of claim with the trustee as soon as possible.
The trustee or receiver will send documentation on what you are owed to both you and Service Canada. You must then apply for payment online, or in person to Service Canada.
What is a proof of claim?
A proof of claim is a written statement that you submit to prove your claim. The Trustee or Receiver can help you complete the proof of claim form.
How long do I have to apply?
Applications to the WEPP must be submitted to Service Canada within 56 days of the date of bankruptcy or receivership. If you have a good reason for missing this deadline, you must provide a written explanation to Service Canada with your application.
Can I file an employment standards claim with the Employment Standards Branch as well as a claim with Service Canada?
Yes, the WEPP does not prohibit an employee from filing an employment standards complaint form with the Employment Standards Branch.
This information is meant to serve as a guide only. The reader is strongly advised to consult the Employment Standards Act to view the legislation. Where any difference exists between this information and the Act, the Act will be considered correct.
This information has been taken from website "Labour"