Wage Earner Protection Program Act

Marginal note:Definitions

• 2 (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.