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Wage Earner Protection Program Act (S.C. 2005, c. 47, s. 1)

Act current to 2020-12-28 and last amended on 2019-07-29. Previous Versions

Wage Earner Protection Program Act

S.C. 2005, c. 47, s. 1

Assented to 2005-11-25

An Act to establish a program for making payments to individuals in respect of wages owed to them by employers who are bankrupt or subject to a receivership

[Enacted by section 1 of chapter 47 of the Statutes of Canada, 2005, in force July 7, 2008, see SI/2008-78.]

Short Title

Marginal note:Short title

 This Act may be cited as the Wage Earner Protection Program Act.

Interpretation

Marginal note:Definitions

  •  (1) The following definitions apply in this Act.

    Board

    Board means the Canada Industrial Relations Board established by section 9 of the Canada Labour Code. (Conseil)

    eligible wages

    eligible wages means

    • (a) wages other than termination pay and severance pay that were earned during the longer of the following periods:

      • (i) the six-month period ending on the date of the bankruptcy or the first day on which there was a receiver in relation to the former employer, and

      • (ii) the period beginning on the day that is six months before one of the following days and ending on the date of the bankruptcy or the first day on which there was a receiver in relation to the former employer:

        • (A) the day on which a proposal is filed by or in respect of the employer under Division I of Part III of the Bankruptcy and Insolvency Act or, if a notice of intention to make a proposal is filed by or in respect of the employer under that Division, the day on which the notice of intention is filed,

        • (B) the day on which the most recent proceedings under the Companies’ Creditors Arrangement Act are commenced; and

    • (b) termination pay and severance pay that relate to employment that ended

      • (i) during the period referred to in paragraph (a), or

      • (ii) during the period beginning on the day after the day on which the period referred to in paragraph (a) ends and ending on the day on which the trustee is discharged or the receiver completes their duties, as the case may be. (salaire admissible)

    wages

    wages includes salaries, commissions, compensation for services rendered, vacation pay, termination pay, severance pay and any other amounts prescribed by regulation. (salaire)

  • Marginal note:Precision

    (1.1) For the purpose of the definition eligible wages, a proposal does not include a proposal for which a certificate is given under section 65.3 of the Bankruptcy and Insolvency Act and a notice of intention to make a proposal does not include a notice of intention in respect of a proposal for which such a certificate is given.

  • Marginal note:Employers subject to a receivership

    (2) For the purposes of this Act, an employer is subject to a receivership when any property of the employer is under the possession or control of a receiver.

  • Marginal note:Meaning of receiver

    (3) In this Act, receiver means a receiver within the meaning of subsection 243(2) of the Bankruptcy and Insolvency Act.

  • Marginal note:Words and expressions

    (4) Unless otherwise provided, words and expressions used in this Act have the same meaning as in the Bankruptcy and Insolvency Act.

  • Marginal note:Related persons

    (5) Despite subsection 4(5) of the Bankruptcy and Insolvency Act,

    • (a) for the purposes of paragraph 6(d), an individual is considered to deal at arm’s length with a related person if the Minister is satisfied that, having regard to the circumstances — including the terms and conditions of the individual’s employment with the former employer, their remuneration and the duration, nature and importance of the work performed for the former employer — it is reasonable to conclude that the individual would have entered into a substantially similar contract of employment with the former employer if they had been dealing with each other at arm’s length; and

    • (b) for the purposes of subsection 21(4), individuals who are related to each other are, in the absence of evidence to the contrary, deemed not to deal with each other at arm’s length while so related.

  • 2005, c. 47, s. 1 “2”
  • 2007, c. 36, s. 83
  • 2009, c. 2, s. 342
  • 2011, c. 24, s. 163
  • 2012, c. 19, s. 697(E)
  • 2017, c. 20, s. 378, c. 26, s. 52
  • 2018, c. 27, s. 627

Designation of Minister

Marginal note:Power of Governor in Council

 The Governor in Council may designate a member of the Queen’s Privy Council for Canada to be the Minister for the purposes of this Act.

Program Established

Marginal note:Establishment

 The Wage Earner Protection Program is established to make payments to individuals in respect of wages owed to them by employers who are bankrupt or subject to a receivership.

Eligibility for Payments

Marginal note:Conditions of eligibility

 An individual is eligible to receive a payment if

  • (a) the individual’s employment ended for a reason prescribed by regulation;

  • (b) the former employer is bankrupt or subject to a receivership; and

  • (c) the individual is owed eligible wages by the former employer.

  • (d) [Repealed, 2009, c. 2, s. 343]

  • 2005, c. 47, s. 1 “5”
  • 2007, c. 36, s. 84
  • 2009, c. 2, s. 343

Marginal note:Exceptions

 An individual is not eligible to receive a payment in respect of any wages earned during, or that otherwise relate to, a period in which the individual

  • (a) was an officer or director of the former employer;

  • (b) had a controlling interest within the meaning of the regulations in the business of the former employer;

  • (c) occupied a managerial position within the meaning of the regulations with the former employer; or

  • (d) was not dealing at arm’s length with

    • (i) an officer or director of the former employer,

    • (ii) a person who had a controlling interest within the meaning of the regulations in the business of the former employer, or

    • (iii) an individual who occupied a managerial position within the meaning of the regulations with the former employer.

  • 2005, c. 47, s. 1 “6”
  • 2007, c. 36, s. 85
  • 2009, c. 2, s. 344
  • 2018, c. 27, s. 630(F)

Amounts Covered by Program

Marginal note:Amount of payment

  •  (1) The amount that may be paid under this Act to an individual is the amount of eligible wages owing to the individual up to a maximum of an amount equal to seven times the maximum weekly insurable earnings under the Employment Insurance Act, less any amount prescribed by regulation.

  • Marginal note:Bankruptcy and receivership

    (2) If the former employer is both bankrupt and subject to a receivership, the amount that may be paid is the greater of the amount determined in respect of the bankruptcy and the amount determined in respect of the receivership.

  • 2005, c. 47, s. 1 “7”
  • 2007, c. 36, s. 86
  • 2009, c. 2, s. 345
  • 2017, c. 26, s. 53
  • 2018, c. 27, s. 631

Application for Payment

Marginal note:Application

 To receive a payment, an individual is to apply to the Minister in the manner and during the period provided for in the regulations.

  • 2005, c. 47, s. 1 “8”
  • 2007, c. 36, s. 87
  • 2018, c. 27, s. 632(F)

Marginal note:Minister’s determination of eligibility

 If the Minister determines that the applicant is eligible to receive a payment, the Minister shall make the payment.

  • 2005, c. 47, s. 1 “9”
  • 2007, c. 36, s. 87

Marginal note:Notification

  •  (1) The Minister is to inform the applicant of their eligibility or ineligibility to receive a payment.

  • Marginal note:Notification to trustee or receiver

    (2) The Minister is to inform the trustee or receiver of the applicant’s eligibility or ineligibility to receive a payment.

  • 2005, c. 47, s. 1 “10”
  • 2007, c. 36, s. 87
  • 2018, c. 27, s. 633
 
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