Human Resources and Skills Development Canada
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Labour

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Not qualifying for compensation from the Wage Earner Protection Program

In addition to establishing the Wage Earner Protection Program, the insolvency reform legislation enacted a new "limited super-priority" provision within the Bankruptcy and Insolvency Act (BIA) which puts unpaid wage and vacation pay claims ahead of secured creditors over the current assets of the insolvent employer's estate or property, up to a maximum of $2,000 per claim.

An individual who does not qualify for compensation from the Wage Earner Protection Program may be able to pursue the wage claim through the limited super-priority up to a $2,000 cap and the existing preferred creditor status for the remaining of the claim.

You are encouraged to contact the trustee or receiver appointed to your employer's bankruptcy or receivership to obtain more information on pursuing a wage claim under the new limited super-priority provisions.

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Date Modified:
2012-01-23