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WEPP Compensation
The Wage Earner Protection Program provides guaranteed and timely payment of wages, vacation, severance and termination pay that are owed to eligible workers, up to an amount equalling four weeks' of maximum insurable earnings under the Employment Insurance (EI) Act.
An individual whose employment is terminated and who is owed unpaid eligible wages will need to file a proof of claim with the trustee or receiver as soon as possible after their employer has filed for bankruptcy or is subject to a receivership.
WEPP payments to compensate employees' for unpaid eligible wage claims are reduced by any amount paid to them after the date of bankruptcy or receivership, and are also subject to a reduction (offset) in the amount of 6.82% as prescribed by the WEPP Regulations. Additional information on bankruptcy and receivership can be found on the website of the Office of the Superintendent of Bankruptcy.
More information on WEPP compensation is available on the Service Canada website.
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