Bankruptcies and Receiverships
My employer has filed bankruptcy, what do I do now?The Government of Canada has recently created the “Wage Earner Protection Program” for employees who have been terminated because their employer is bankrupt or in receivership. This program may provide eligible employees with up to $3250.00, or the equivalent of four weeks maximum insurable earnings under the Employment Insurance Program.Does Employment Standards run this program?No, the program is run by the Government of Canada and by the bankruptcy trustees and receivers.Should I contact Employment Standards if my employer declares bankruptcy?Yes, employees who have lost their jobs or have not been paid because an employer has closed or declared bankruptcy should file a claim with Employment Standards. Claims must be filed within 6 months of the last day worked for the employer.Where can I find more information?Service Canada runs the program. You can contact them at:
For more information contact the Employment Standards Branch:
This is a general overview and the information used is subject to change. For detailed information, please refer to current legislation including The Employment Standards Code and The Worker Recruitment and Protection Act, or contact the Employment Standards Branch to ask for advice. Date Published: June 22, 2011 |
