Human Resources and Skills Development Canada
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Wage Earner Protection Program Factsheet

A new program to protect workers' wages!

What is it?

The Wage Earner Protection Program (WEPP) is a new Government of Canada program that provides timely payment of eligible wages for workers whose employer declared bankruptcy or became subject to a receivership.

Who is eligible?

Any worker who is legally entitled to work in Canada and meets all of the following criteria can apply:

  • his/her employment has ended;
  • his/her former employer has filed for bankruptcy or is subject to a receivership; and
  • he/she is owed eligible wages by the former employer.

Workers are generally not eligible to receive a payment in respect of any wages earned during, or that otherwise relate to, a period in which the individual:

  • was an officer or a director of the former employer;
  • had a controlling interest in the business of the former employer;
  • was a manager whose responsabilities included making binding financial decisions impacting the business of the former employer, and/or making binding decisions on the payment or non payment of wages by the former employer; or
  • was not dealing at arm's length with any of these persons.

How does it work?

  • The trustee or receiver assigned to manage the bankruptcy or receivership will provide the eligible workers with information on the Program.
  • The eligible worker must file a proof of claim with the trustee or receiver. A proof of claim is a written statement that the eligible worker submits indicating the amount believed as owed. The trustee or receiver can help the eligible worker complete the proof of claim statement.
  • The eligible worker must also submit an application for payment to Service Canada by completing the WEPP-application form found online.

What are the responsibilities of trustees and receivers?

Trustees and receivers have the responsibility to:

  • identify workers who are owed eligible wages;
  • determine the amounts owed to workers;
  • inform workers of the existence of the WEPP; and
  • provide Service Canada and applicants with information necessary to establish eligibility for payment.

Are there deadlines to be respected?

Yes, applications must be submitted by applicants to Service Canada within 56 days of the date of bankruptcy or receivership. If there is good cause for missing this deadline, a written explanation for the delay must be provided.

How much will eligible workers receive?

The maximum amount that can be received under the Program is the equivalent of four weeks maximum insurable earnings under the Employment Insurance Program, approximately $3,400 at the moment. The compensation will correspond to the unpaid eligible wages owed up to the maximum amount. Source deductions that would normally have been applied to the pay and amounts received after the date of the bankruptcy or receivership in respect of the eligible wages will be subtracted from the payment.

How do I get more information?

For further information on the Wage Earner Protection Program or on the status of an application, please call the Service Canada dedicated information line:

Toll-free: 1-866-683-6516 (TTY: 1-800-926-9105)

or visit the Service Canada website.

When inquiring about the status of your application you will need to provide your Social Insurance Number.

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Date Modified:
2012-09-24