Wage Earner Protection Program Act (S.C. 2005, c. 47, s. 1)

Act current to 2016-05-12 and last amended on 2013-03-01. Previous Versions

Wage Earner Protection Program Act

S.C. 2005, c. 47, s. 1

Assented to 2005-11-25

An Act to establish a program for making payments to individuals in respect of wages owed to them by employers who are bankrupt or subject to a receivership

[Enacted by section 1 of chapter 47 of the Statutes of Canada, 2005, in force July 7, 2008, see SI/2008-78.]

Short Title

Marginal note:Short title

 This Act may be cited as the Wage Earner Protection Program Act.

Interpretation

Marginal note:Definitions
  •  (1) The following definitions apply in this Act.

    eligible wages

    salaire admissible

    eligible wages means

    • (a) wages other than severance pay and termination 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 the day on which a proposal under Division I of Part III of the Bankruptcy and Insolvency Act is filed by or in respect of the employer or the day on which proceedings under the Companies’ Creditors Arrangement Act are commenced and ending on the date of the bankruptcy or the first day on which there was a receiver in relation to the former employer; and

    • (b) severance pay and termination pay that relate to employment that ended during the period referred to in paragraph (a). (salaire admissible)

    wages

    salaire

    wages includes salaries, commissions, compensation for services rendered, vacation pay, severance pay, termination pay and any other amounts prescribed by regulation. (salaire)

  • 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.

  • 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.

  • 2005, c. 47, s. 1 “2”;
  • 2007, c. 36, s. 83;
  • 2009, c. 2, s. 342;
  • 2011, c. 24, s. 163;
  • 2012, c. 19, s. 697(E).

Designation of Minister

Marginal note:Power of Governor in Council

 The Governor in Council may designate a member of the Queen’s Privy Council for Canada to be the Minister for the purposes of this Act.

Program Established

Marginal note:Establishment

 The Wage Earner Protection Program is established to make payments to individuals in respect of wages owed to them by employers who are bankrupt or subject to a receivership.

Eligibility for Payments

Marginal note:Conditions of eligibility

 An individual is eligible to receive a payment if

  • (a) the individual’s employment ended for a reason prescribed by regulation;

  • (b) the former employer is bankrupt or subject to a receivership; and

  • (c) the individual is owed eligible wages by the former employer.

  • (d) [Repealed, 2009, c. 2, s. 343]

  • 2005, c. 47, s. 1 “5”;
  • 2007, c. 36, s. 84;
  • 2009, c. 2, s. 343.
Marginal note:Exceptions

 An individual is not eligible to receive a payment in respect of any wages earned during, or that otherwise relate to, a period in which the individual

  • (a) was an officer or director of the former employer;

  • (b) had a controlling interest within the meaning of the regulations in the business of the former employer;

  • (c) occupied a managerial position within the meaning of the regulations with the former employer; or

  • (d) was not dealing at arm’s length with

    • (i) an officer or director of the former employer,

    • (ii) a person who had a controlling interest within the meaning of the regulations in the business of the former employer, or

    • (iii) an individual who occupied a managerial position within the meaning of the regulations with the former employer.

  • 2005, c. 47, s. 1 “6”;
  • 2007, c. 36, s. 85;
  • 2009, c. 2, s. 344.

Amounts Covered by Program

Marginal note:Amount of payment
  •  (1) The amount that may be paid under this Act to an individual is the amount of eligible wages owing to the individual up to a maximum of the greater of the following amounts, less any amount prescribed by regulation:

  • Marginal note:Bankruptcy and receivership

    (2) If the former employer is both bankrupt and subject to a receivership, the amount that may be paid is the greater of the amount determined in respect of the bankruptcy and the amount determined in respect of the receivership.

  • 2005, c. 47, s. 1 “7”;
  • 2007, c. 36, s. 86;
  • 2009, c. 2, s. 345.

Application for Payment

Marginal note:Application

 To receive a payment, an individual is to apply to the Minister in the manner and during the period provided for in the regulations.

  • 2005, c. 47, s. 1 “8”;
  • 2007, c. 36, s. 87.
Marginal note:Minister’s determination of eligibility

 If the Minister determines that the applicant is eligible to receive a payment, the Minister shall make the payment.

  • 2005, c. 47, s. 1 “9”;
  • 2007, c. 36, s. 87.
Marginal note:Notification

 The Minister is to inform the applicant of their eligibility or ineligibility to receive a payment.

  • 2005, c. 47, s. 1 “10”;
  • 2007, c. 36, s. 87.

Review by Minister

Marginal note:Request for review

 An applicant who is informed under section 10 may request a review of their eligibility or ineligibility, as the case may be.

  • 2005, c. 47, s. 1 “11”;
  • 2007, c. 36, s. 87.
Marginal note:Review

 The Minister may confirm, vary or rescind a determination of eligibility made under section 9. If the Minister varies the determination, the Minister shall make any payment resulting from the variation.

  • 2005, c. 47, s. 1 “12”;
  • 2007, c. 36, s. 87.
Marginal note:Review is final

 Subject to the right of appeal under section 14, the Minister’s confirmation, variation or rescission, as the case may be, is final and may not be questioned or reviewed in any court.

  • 2005, c. 47, s. 1 “13”;
  • 2007, c. 36, s. 87.
 
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