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Version of document from 2008-07-04 to 2008-07-06:

Wage Earner Protection Program Regulations

SOR/2008-222

WAGE EARNER PROTECTION PROGRAM ACT

Registration 2008-07-04

Wage Earner Protection Program Regulations

P.C. 2008-1317 2008-07-04

Her Excellency the Governor General in Council, on the recommendation of the Minister of Labour, pursuant to section 41 of the Wage Earner Protection Program ActFootnote a, hereby makes the annexed Wage Earner Protection Program Regulations.

Interpretation

The following provision is not in force.

 The following definitions apply in these Regulations.

Act

Act means the Wage Earner Protection Program Act. (Loi)

Minister

Minister means the Minister of Labour. (ministre)

Wages

The following provision is not in force.

 The following amounts are prescribed for the purposes of subsection 2(1) of the Act:

  • (a) gratuities accounted for by the employer;

  • (b) disbursements of a travelling salesperson properly incurred in and about the business of a bankrupt or the business of a person subject to a receivership; and

  • (c) production bonuses and shift premiums.

Termination of Employment

The following provision is not in force.
  •  (1) For the purpose of paragraph 5(a) of the Act, an individual is eligible to receive payment if the individual’s employment terminated as a result of a definitive and permanent breach of the employment contract.

  • (2) For the purpose of subsection (1), a definitive and permanent breach occurs if there is a period of at least seven consecutive days during which no work is performed for the employer and during which no wages are payable.

Controlling Interest

The following provision is not in force.

 For the purpose of paragraph 6(b) of the Act, an individual had a controlling interest in the business of their former employer if the individual owned

  • (a) more than 40% of the voting shares in the business;

  • (b) a block of voting shares that is large enough such that no one shareholder or coalition of shareholders can block a motion; or

  • (c) enough shares in the business to control the business’s policy.

Excluded Managers

The following provision is not in force.

 For the purpose of paragraph 6(c) of the Act, an individual occupied a managerial position with their former employer if the responsibilities of the individual included making binding

  • (a) financial decisions affecting the business of the former employer; or

  • (b) decisions with respect to the payment or the non-payment of wages by the former employer.

Offsets

The following provision is not in force.

 The following amounts are prescribed for the purpose of subsection 7(1) of the Act:

  • (a) any amount that the individual has received under section 81.3 or 81.4 of the Bankruptcy and Insolvency Act; and

  • (b) an amount equal to 6.82% of the amount owing to the individual for wages earned during the six months immediately before the date of the bankruptcy or the first day on which there was a receiver in relation to the former employer.

The following provision is not in force.

 The following amounts are prescribed for the purpose of subsection 7(2) of the Act:

  • (a) any amount that the individual has received under section 81.3 or 81.4 of the Bankruptcy and Insolvency Act; and

  • (b) an amount equal to 6.82% of the greater of the amounts referred to in paragraphs 7(2)(a) and (b) of the Act.

Allocation of Payments

The following provision is not in force.

 Payments to an individual under the Act are to be allocated in the following order:

  • (a) firstly, to wages other than those referred to in paragraphs (b) and (c);

  • (b) secondly, to disbursements of a travelling salesperson properly incurred in and about the business of a bankrupt or the business of a person subject to a receivership to the extent referred to in subsections 81.3(3) and 81.4(3) of the Bankruptcy and Insolvency Act; and

  • (c) thirdly, to vacation pay.

Applications

The following provision is not in force.

 An application for payment shall, unless circumstances beyond the control of the applicant necessitate a longer period, be made within 56 days after the latest of the day

  • (a) of the bankruptcy or receivership of the applicant’s former employer;

  • (b) on which the applicant’s employment terminates for the reason referred to in section 3; and

  • (c) on which the receiver terminates the applicant’s employment.

The following provision is not in force.

 An application shall be made in writing using the form provided by the Minister.

Review

The following provision is not in force.

 An applicant shall, unless circumstances beyond the control of the applicant necessitate a longer period, request a review under section 11 of the Act in writing no more than 30 days after the day on which the applicant is informed of the Minister’s determination of eligibility or ineligibility, as the case may be.

The following provision is not in force.

 The Minister shall notify the applicant in writing of the Minister’s decision.

Appeal

The following provision is not in force.

 An appeal to an adjudicator under section 14 of the Act shall, unless circumstances beyond the control of the applicant necessitate a longer period, be made within 60 days after the day on which the applicant is notified of the Minister’s decision.

The following provision is not in force.

 The appeal shall be made in writing and contain a statement of the grounds of appeal.

Information to Be Provided to the Minister

The following provision is not in force.
  •  (1) For the purpose of paragraph 21(1)(d) of the Act, the trustee or receiver shall provide the Minister with the following information in the form provided by the Minister:

    • (a) the date of bankruptcy or receivership;

    • (b) the name, address, telephone number, social insurance number, employee number and job title of the individual;

    • (c) the dates on which the wages were earned and the basis upon which they were calculated;

    • (d) a statement as to whether or not the individual submitted a proof of claim for wages owing under section 124 of the Bankruptcy and Insolvency Act; and

    • (e) the names of the employer’s officers, directors and owners and of the person responsible for the employer’s payroll.

  • (2) The trustee or receiver shall provide the information within

    • (a) 35 days from the date of bankruptcy or from the first day on which there was a receiver in relation to the former employer, as the case may be; or

    • (b) if the trustee or receiver requests the information under subsection 21(3) or (4) of the Act, 15 days after receiving the information.

Information to Be Provided to an Individual

The following provision is not in force.
  •  (1) For the purpose of paragraph 21(1)(d) of the Act, the trustee or receiver shall provide each individual with the following information:

    • (a) the date of bankruptcy or receivership;

    • (b) a statement informing the individual of their requirement under section 124 of the Bankruptcy and Insolvency Act to submit a proof of claim for wages owing;

    • (c) a copy of the information and documents that they provided to the Minister with respect to the individual; and

    • (d) an application form for the Wage Earner Protection Program.

  • (2) The trustee or receiver shall provide the information within 35 days from the date of bankruptcy or from the first day on which there was a receiver in relation to the former employer, as the case may be.

Duty to Assist — Deadlines

The following provision is not in force.
  •  (1) A person shall provide information under subsection 21(3) or (4) of the Act within 10 days after the day on which they receive the request unless circumstances beyond the control of the person necessitate a longer period and the person provides a written request to the Minister for extension before the 10 days have elapsed.

  • (2) A copy of the request for extension shall also be provided to the trustee or receiver, as the case may be.

Fees and Expenses

The following provision is not in force.
  •  (1) For the purpose of subsection 22(2) of the Act, the Minister shall, on application by the trustee or receiver, pay the fees and expenses in relation to the performance of their duties under the Act if

    • (a) the trustee or receiver provides a copy of their final statement of receipts and disbursements for the bankruptcy or receivership;

    • (b) the final statement of receipts and disbursements for the bankruptcy or receivership shows a deficit;

    • (c) no guarantee has been provided by a creditor of the employer in respect of the fees and expenses; and

    • (d) the fees in relation to the performance of duties under section 21 of the Act are equal to at least 10% of the total fees charged for the administration of the bankruptcy or receivership.

  • (2) The amount payable is equal to the lesser of

    • (a) the amount of the deficit shown in the final statement of receipts and disbursements, and

    • (b) the amount obtained by adding $600 for the first wage claim to the amount determined by multiplying $35 by the number of subsequent claims.

The following provision is not in force.
  •  (1) For the purposes of subsection 22(2) of the Act, the Minister shall, on application by the trustee or receiver, pay the fees and expenses for their administration of the estate or property if

    • (a) the trustee or receiver provides a copy of their final statement of receipts and disbursements for the bankruptcy or receivership;

    • (b) the final statement of receipts and disbursements for the bankruptcy or receivership shows a deficit;

    • (c) the amount determined in accordance with the following formula is greater than zero and less than or equal to the value of the rights under sections 81.3 and 81.4 of the Bankruptcy and Insolvency Act:

      X - Y

      where

      X
      is equal to the current assets realized, and
      Y
      is the sum of the value of the rights under sections 81.1 and 81.2 of the Bankruptcy and Insolvency Act and the amounts referred to in subsection 67(3) of that Act that have been deemed to be held in trust; and
    • (d) the value of the rights under sections 81.3 and 81.4 of the Bankruptcy and Insolvency Act constitutes the entire value of the property in the possession of the trustee or receiver.

  • (2) The amount payable is equal to the least of the following amounts, minus any amount paid under section 18:

    • (a) the sum of

      • (i) 95% of the value of current assets realized that are worth less than $2,000,

      • (ii) 50% of the value of current assets realized that are worth between $2,000 and $4,000,

      • (iii) 35% of the value of current assets realized that are worth between $4,000.01 and $10,000,

      • (iv) 5% of the value of current assets realized that are worth $10,000.01 or more, and

      • (v) the fees and expenses

        • (A) for taking possession of the property, making an inventory and securing and insuring the property,

        • (B) for mail-outs to creditors to advise them of the meeting of creditors and the discharge hearing of the trustee,

        • (C) for the cost of publishing a newspaper notice of the bankruptcy,

        • (D) of the official receiver and the registrar, and

        • (E) for other items that may be allowed by the court on the taxation of the statement of receipts and disbursements to a maximum of $1,000;

    • (b) if a guarantee has been provided by a creditor of the employer in respect of the fees and expenses, the value of that guarantee; and

    • (c) the value of the rights under sections 81.3 and 81.4 of the Bankruptcy and Insolvency Act.

Coming into Force

The following provision is not in force.

Footnote * These Regulations come into force on the day on which the Wage Earner Protection Program Act, as enacted by section 1 of chapter 47 of the Statutes of Canada, 2005, comes into force.


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