Wage Earner Protection Program Regulations (SOR/2008-222)

AMENDMENTS NOT IN FORCE

• — SOR/2021-196, s. 1

  • 1 The Wage Earner Protection Program RegulationsFootnote ¹ are amended by adding the following after section 3:

    • Return to footnote ¹SOR/2008-222

    Foreign Proceedings

    • 3.1 For the purposes of subsection 5(2) of the Act, a court may determine whether the foreign proceeding is in respect of a former employer that has terminated all of its employees in Canada other than any retained to wind down its business operations.

    Proceedings Under Bankruptcy and Insolvency Act or Companies’ Creditors Arrangement Act

    • 3.2 For the purposes of subsection 5(5) of the Act, a court may determine whether the former employer is the former employer all of whose employees in Canada have been terminated other than any retained to wind down its business operations.

• — SOR/2021-196, s. 2

  • 2 Section 6 of the Regulations is replaced by the following:

    • 6 Any amount that an individual has received in respect of eligible wages or in respect of the termination of employment that is paid by the former employer or from any other source, excluding any amounts received through other federal or provincial programs, after the date of the bankruptcy or receivership, or the day on which a court determines that the former employer meets the criteria set out in section 3.1 or 3.2, as the case may be, is the amount for the purposes of subsection 7(1.1) of the Act.

• — SOR/2021-196, s. 3

  • 3 Section 9 of the Regulations is replaced by the following:

    • • 9 (1) An application for payment shall be made within 56 days after the latest of the following days:

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

        • (b) the day on which the applicant’s employment ends for any of the reasons referred to in section 3, and

        • (c) the day on which a court determines that the former employer meets the criteria set out in section 3.1 or 3.2, as the case may be.

      • (2) The application may be submitted after the expiry of the 56-day period if circumstances beyond the control of the applicant prevented them from submitting the application during that period.

• — SOR/2021-196, s. 4

  • 4 Section 11 of the Regulations is replaced by the following:

    • • 11 (1) An applicant shall request a review under section 11 or 32.1 of the Act in writing within 30 days after the day on which the applicant is informed under subsection 10(1) or 32(1) of the Act, as the case may be, of the Minister’s determination.

      • (2) The request may be submitted after the expiry of the 30-day period if circumstances beyond the control of the applicant prevented them from submitting the request during that period.

• — SOR/2021-196, s. 5

  • 5 The heading before section 13 and sections 13 and 14 of the Regulations are repealed.

• — SOR/2021-196, s. 6

  • 6 Paragraph 15(1)(a) of the Regulations is replaced by the following:

    • (a) the date of bankruptcy or receivership, or the day on which a court determines that the former employer meets the criteria set out in section 3.1 or 3.2, as the case may be;

• — SOR/2021-196, s. 7

  • 7 Paragraph 16(1)(a) of the Regulations is replaced by the following:

    • (a) the date of bankruptcy or receivership, or the day on which a court determines that the former employer meets the criteria set out in section 3.1 or 3.2, as the case may be;

• — SOR/2021-196, s. 8

  • 8 Sections 18 to 20 of the Regulations are replaced by the following:

    • • 18 (1) For the purposes of section 22.1 of the Act, the Minister shall, on application by the trustee, pay the fees and expenses if

        • (a) the trustee has submitted a claim in the form approved by the Minister;

        • (b) the claim indicates a deficit; and

        • (c) the amount of any third-party deposits and guarantees in respect of the fees and expenses is less than the deficit.

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

        • (a) the amount by which the deficit exceeds the amount of any third-party deposits and guarantees; and

        • (b) the amount determined by the formula

          A + B

          where

          A

          is the amount obtained by adding $1,000, as adjusted, to

          • (i) $150, as adjusted, for each of the first 10 claims, and

          • (ii) $100, as adjusted, for each additional claim; and

          B

          is, the total of the fees and expenses to a maximum of $6,000, as adjusted, not including applicable sales taxes, incurred

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

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

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

          • (iv) for the official receiver and the registrar, and

          • (v) for all of the 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, as adjusted.

      • (3) Despite subsection (2), the amount determined for B in paragraph (2)(b) is equal to 0 if the amount determined in accordance with the following formula is more than $10,000, as adjusted:

        X – Y

        where

        X

        is equal to the total value of the former employer’s assets; and

        Y

        is the total value of the claims that have priority over the fees and expenses of the trustee.

      • (4) The Minister may request that the trustee provide a copy of the final statement of receipts and disbursements.

    • • 19 (1) The amounts, as indicated in subsections 18(2) and (3), that are to be adjusted are to be done so on January 1 of each year in accordance with the percentage increase to the consumer price index for the year ending on September 30 of the previous year.

      • (2) The consumer price index is the annual average all-items consumer price index for Canada (not seasonally adjusted) published by Statistics Canada.

      • (3) The adjusted amounts are to be rounded

        • (a) in the case of those set out in the description of A in paragraph 18(2)(b), to the nearest dollar;

        • (b) subject to paragraph (c), in the case of those set out in the description of B in paragraph 18(2)(b) and in subsection 18(3), to the nearest $500 increment; and

        • (c) in the case of those set out in subparagraph (v) of the description of B in paragraph 18(2)(b), to the nearest $100 increment.

      • (4) If, as a result of rounding, an amount set out in the description of B in subsection (2) remains the same as it was for the previous year, the unrounded adjusted amount is to be used for the purposes of the adjustment for the following year.

    • 20 The notice referred to in subsections 36(1.1) and (1.2) of the Act is to be provided to the Minister within 30 days after the day on which the individual becomes aware of the action, proceeding, decision or order, as the case may be, and include

      • (a) the name, address, telephone number and social insurance number of the individual;

      • (b) in the case of a notice referred to in subsection 36(1.1),

        • (i) the date the action or proceeding was commenced,

        • (ii) the nature of the action or proceeding,

        • (iii) the name of the person who commenced the action or proceeding and their contact information; and

      • (c) in the case of a notice referred to in subsection 36(1.2), the date the decision or order was made and, if a payment has been received as a result of the decision or order,

        • (i) the amount of the payment broken down by the components of wages to which it relates and by recipient,

        • (ii) the contact information of the recipients,

        • (iii) the time period for which the payment relates, and

        • (iv) the source of the payment.

• — SOR/2021-196, s. 9

  • 9 The Wage Earner Protection Program Regulations, as they read immediately before the day on which these Regulations come into force, continue to apply where the date of the bankruptcy or the first day on which there was a receiver in relation to the former employer occurs before the day on which these Regulations come into force.