WEPP - How Outstanding Wages Are Handled During Bankruptcy

In 2008, the federal government established the Wage Earner Protection Program (WEPP). The provision was designed to protect the rights of workers whose employers have gone into bankruptcy or receivership. The program allows eligible workers to make a claim for outstanding amounts of pay, which are charged against the debtor company's assets or bankruptcy estate

What and how much can employees claim?

The WEPP caps the amount that employees can claim at the equivalent of four weeks of the maximum weekly insurable earnings under the Employment Insurance Act. The claim may include amounts for:

• Unpaid wages or salary
• Commissions and gratuities
• Disbursements of travelling sales people