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Questions and Answers for Applicants to the Wage Earner Protection Program

1. What is the Wage Earner Protection Program (WEPP)?

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

2. Who is eligible for the WEPP?

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;
  • 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 your former employer, and/or making binding decisions on the payment or non payment of wages by your former employer; or
  • was not dealing at arm's length with any of these persons.

3. What are eligible wages?

The following amounts are considered eligible wages under the WEPP:

  • Salaries, commissions, compensation for services rendered, vacation pay, gratuities accounted for by the employer, disbursements of a travelling salesperson properly incurred in and about the business of the former employer, production bonuses and shift premiums that were earned during the eligible period; and
  • Severance pay and termination pay for employment that ended during the eligibility period.

4. What is the eligibility period?

The eligibility period is defined as the period in which wages and vacation pay must have been earned to be eligible for compensation under the WEPP, and in which your employment must have ended to be eligible for termination and severance pay.

The eligibility period starts six months before a restructuring event and ends on the date of bankrupcty or receivership. Should your employer not go through restructuring, the eligibility period is the six-month period ending on the date of bankruptcy or receivership.

5. What is a restructuring event ?

For the purposes of WEPP a restructuring event is a proposal under Division I of Part III of the Bankruptcy and Insolvency Act or proceedings under the Companies’ Creditors Arrangement Act.

The trustee or receiver administering the insolvency of your former employer will inform you if these events occurred in your situation.

6. How do I apply?

The trustee or receiver will provide you with information on the Program.

  • You should file a proof of claim with the trustee or receiver as soon as possible. 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.
  • The trustee or receiver will send documentation to both you and Service Canada outlining the amounts that are owed to you. The information contained on this form can assist you in completing your own application.
  • You must then apply for payment online, or in person at a Service Canada Centre.

7. Will I need to provide additional/supporting documents along with the application form?

The majority of applicants need only submit the application form. It is important to note, that before you apply you should receive a copy of the form the trustee or receiver has provided to Service Canada outlining the amounts that are owed to you. The information on this trustee/receiver form can assist you in completing your application form.

However, if you are related to persons excluded from the Program, you will have to submit the WEPP Supplementary Form - Additional Information Regarding Your Relationship to Your Employer.

8. What role do the trustees and receivers have in the Program?

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;
  • Provide Service Canada and applicants with information necessary to establish eligibility for payment.

9. Is there a deadline to apply?

Applications must be submitted to Service Canada within 56 days from either the date of bankruptcy or receivership, or from the date your employment ended. If circumstances beyond your control prevent you from from meeting this deadline, you must also provide a written explanation for the delay.

10. How much will I receive?

The maximum amount you can receive under the Program is the equivalent of four weeks maximum insurable earnings under the Employment Insurance Program. Your compensation will correspond to the unpaid eligible wages owed to you up to the maximum. Amounts that reflect the source deductions that would normally have been applied to your pay and amounts received after the date of the bankruptcy or receivership by virtue of your rights in respect of the eligible wages will be subtracted from your payment.

11. When will I receive my payment?

You can expect your application to be processed and your payment to be issued shortly after we have received your completed application and the information form provided by the trustee/receiver. A complete application form will assist with timely processing of your application.

You have the choice between receiving a direct deposit payment and having a cheque mailed to the address indicated on your application form.

12. Who do I contact for more information on the status of my application and on the Wage Earner Protection Program?

If you have any questions about the Wage Earner Protection Program and/or problems related to your application, please call the Service Canada dedicated information line at 1-866-683-6516 (TTY 1-800-926-9105). Please note that you will need to provide your Social Insurance Number to the agent when inquiring about the status of your application. You can also visit the Service Canada website for more information.

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Date Modified:
2012-02-15