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

Act current to 2014-10-15 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).

    “wages”

    « salaire »

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

  • 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).