Wage Earner Protection Program – Overview
The Wage Earner Protection Program (WEPP) provides for the payment of outstanding eligible wages to individuals whose employer is bankrupt or subject to a receivership within the meaning of subsection 243(2) of the Bankruptcy and Insolvency Act.
The payment covers eligible wages up to an amount equal to four times the maximum weekly insurable earnings under the Employment Insurance Act ($3,946.16 for 2017), minus the amounts prescribed by the Wage Earner Protection Program Regulations.
The WEPP is delivered by Service Canada for the Labour Program.
The 'prescribed reduction' of 6.82%
The WEPP payments are subject to a reduction of 6.82%, as prescribed by the WEPP Regulations. This WEPP offset does not represent amounts that were remitted for Employment Insurance and the Canada Pension Plan on behalf of the employee; therefore, no T4A will be issued for that reduction.
When an individual applies to receive a WEPP payment, they agree to sign over their wage claim to the Government of Canada, up to the amount of the WEPP payment.
After the payment, the Government of Canada recovers the amount paid from the employer through the bankruptcy or receivership proceedings.
What to do if there is no trustee or receiver appointed in your employer's business closure
In this situation, you are not eligible for the WEPP. However, you may ask for assistance under federal or provincial labour standards legislation. You will find contact information for provincial and territorial labour standards offices for your area.
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