The Wage Earner Protection Program (WEPP) is a federal program administered by Service Canada with the aim of assisting workers whose employer is bankrupt or subject to receivership.
The program, which came into effect in 2008, provides benefits to workers owed amounts for “eligible wages.” It offers protection to workers and mitigates the negative impact of sudden job loss.
Who Is Eligible for the Wage Earner Protection Program?
The following conditions must be met for a worker to be eligible for WEPP benefits:
- The employer is bankrupt or subject to receivership;
- The employment of the worker has ended;
- The employer owes wages to the worker;
- The unpaid wages were earned during the 6-month period preceding bankruptcy, receivership, or a previous restructuring procedure.
There are some exceptions to the above conditions. The following individuals would not be eligible for WEPP benefits:
- An officer or director of the employer;
- Someone who had control of the employer’s affairs (e.g., someone with over 40% voting rights by shareholding);
- Someone who held a managerial position with the employer;
- Someone with a dependency link to a person mentioned above.
Note that it is possible for a worker with a dependency link to a person mentioned above to be eligible if they can demonstrate that the terms of their employment would have been the same without this dependency link. Also, a family relationship does not necessarily equate to a dependency link. The final decision to include or exclude a worker remains with the Minister of Labour’s office, not within the purview of the trustee or receiver.
What Amounts Can Be Claimed?
Amounts eligible for a claim under the Wage Earner Protection Program include:
- Wages (including salaries, commissions, performance bonuses, and shift premiums);
- Vacation pay;
- Severance pay and notice;
- Tips recorded by the employer;
- Regularly disbursed amounts by a traveling salesperson.
As mentioned earlier, the claim must relate to wages earned (and unpaid) in the 6 months preceding bankruptcy or restructuring.
The maximum amount of a claim is set at 7 times the maximum insurable weekly earnings under the Employment Insurance Act ($8,507.66 in 2024).
You can check the current amounts at the following address: https://www.canada.ca/fr/emploi-developpement-social/services/protection-salaries/employe/montant-prestation.html
How to Apply for Benefits?
Before being able to submit a request for benefits, the employee must submit proof of claim to the trustee or receiver who must then open a file with the WEPP.
Once the proof of claim is admitted and the file is opened by the trustee/receiver, the worker will be invited to submit a request to the Minister of Labor through Service Canada.
For the application to be valid, the worker must submit it to Service Canada within 56 days of the date of bankruptcy or receivership.
You can submit an application to Service Canada in two ways:
Before applying, make sure to have the following information on hand:
- Your Social Insurance Number (SIN);
- The identification number of the Office of the Superintendent of Bankruptcy.
More information on the Wage Earner Protection Program
For more information on the WEPP, you can refer to the following resources:
- Wage Earner Protection Program Act (CanLII)
- Wage Earner Protection Program Regulations (CanLII)
- About the Wage Earner Protection Program (Employment and Social Development Canada)
- Employment Insurance Act (CanLII)
- Notice of termination of employment and indemnity
(CNESST) - Service Canada’s dedicated information line for the WEPP: 1-866-683-6516
