On July 7, 2008, the federal government’s Wage Earner Protection Program (WEPP) came into force.
Now, if an employer is bankrupt or in receivership, employees may apply to the WEPP to receive outstanding wages earned in the 6 months prior to the filing for bankruptcy or receivership to a maximum of $3,000. “Wages” for the purposes of WEPP includes vacation pay, but does not include severance or termination pay.
When an employee applies for payment from the WEPP, the employee will be required to sign over his or her wage claim to the Government of Canada. The Government may then claim the amounts it paid under the WEPP from the bankrupt estate.
For more information on the WEPP, please visit the link, below.