Bankruptcy and Employees (Wage Earner Protection Program)

The Wage Earner Protection Program (WEPP) was developed by the federal government to protect workers when employers become bankrupt or are subject to receivership.

All inquiries regarding the WEPP should be addressed to the Federal Government through Service Canada toll free at 1–866–683–6516 (TTY 1–800–926–9105). Additional information may be found on the Service Canada Wage Earner Protection Program website.

WEPP is a separate, federally regulated program to compensate employees when their employer is subject to a formal bankruptcy or receivership. Employment Standards is a provincially regulated program.

WEPP will cover unpaid wages, vacation pay, termination pay, and severance pay, (for bankruptcies or receiverships on or after February 27, 2018) an amount up to seven times the maximum weekly insurable earnings under the Employment Insurance Act ($7,148.05 for 2019), that an employee earned or became entitled to in the last six months before a formal bankruptcy or receivership.

If you think you are eligible for a payment received through WEPP, you should contact the trustee in bankruptcy or the court–appointed receiver acting for the employer who will provide you with information about the WEPP. You should file a proof of claim with the trustee as soon as possible.  The trustee or receiver will send documentation on what you are owed to both you and Service Canada.

Even if you qualify under the WEPP, you may still file a claim with the Employment Standards Branch.