Adoption Of Act 47: Protecting Workers When Employers Go Bankrupt

Last November, the Canadian Parliament adopted Bill C-55 entitled an Act to establish the Wage Earner Protection Program Act, to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act and to make consequential amendments to other Acts, which then became Chapter 47 of the 2005 statutes (hereinafter "Act 47"). One of the goals of Act 47 is to provide wage earners with better protection against the consequences of employers going bankrupt. The chapters of this Act will only come into force on the dates set by order in council. We can expect to wait a few more months, if only to give the government enough time to develop implementing regulations. The Standing Senate Committee on Banking, Trade and Commerce has stated that it would like the law only to take effect in late June 2006, giving more time to the committee to take a closer look at this important legislation and to the government to propose necessary amendments. Whatever these amendments may be, they