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ARTICLE · 25 JANUARY 2022

WEPPA Amendments In Force: Some Welcome Changes

On November 20, 2021, long-awaited amendments to the Wage Earner Protection Program ("WEPP") came into force. The amendments are a welcome change to WEPP and will close some of the remaining gaps...

CanadaInsolvency/Bankruptcy/Re-Structuring
Craig Harasymchuk (Student-at-Law)
Craig Harasymchuk (Student-at-Law)
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On November 20, 2021, long-awaited amendments to the Wage Earner Protection Program ("WEPP") came into force. The amendments are a welcome change to WEPP and will close some of the remaining gaps in the program designed to protect some of the most vulnerable stakeholders in an insolvency proceeding - employees.

The Wage Earner Protection Program

WEPP is a federal program, enacted under the Wage Earner Protection Program Act, SC 2005, c 47, as amended ("WEPPA"), designed to protect the wages of employees by making payments to employees when their employer enters certain insolvency proceedings. While the Bankruptcy and Insolvency Act, RSC 1985, c B-3, as amended (the "BIA") provides for a priority to employees under s. 136(1)(d), this priority is limited to the first $2,000 of unpaid wages only, and the priority does not apply to statutory termination or severance pay, or to common law pay in lieu of notice.

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