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Bankruptcies & CCAA

Wage Earner Protection Program expanded to include severance and termination pay

Jurisdiction: - Canada/Federal

In a post in July 2008, I outlined the federal government's new "Wage Earner Protection Program" (WEPP"). The WEPP coverage has now been expanded to include severance and termination pay for employees whose employer went bankrupt or entered into receivership on, or after, January 27, 2009. Read more here.

New legislation in force to protect workers when employer becomes bankrupt or subject to receivership

Jurisdiction: - Canada/Federal

The new federal Wage Earner Protection Program Act (WEPP) and associated amendments to the Bankruptcy and Insolvency Act came into force today.

According to the federal government's website about the Wage Earner Protection Program (WEPP), it:

...reimburses eligible workers for unpaid wages and vacation pay [earned during the previous six months but not paid or taken] they are owed when their employer declares bankruptcy or becomes subject to a receivership.

WEPP payments do not cover severance, termination pay or other employee benefits and there is a maximum payment of four times the Employment Insurance average weekly wage (approximately $3000), less amounts prescribed by regulations.

"Canadian Labour, Employment and Privacy Considerations in Business Transactions"

Brian J. Thiessen wrote a paper entitled, "Canadian Labour, Employment and Privacy Considerations in Business Transactions" for the Western Canadian Forum on Employment Law, Canadian Institute, held in Calgary, Alberta, February 12-13, 2008.Mr. Thiessen is a lawyer with Blakes in Calgary.

"Employee Claims in Canadian Insolvency Proceedings"

Linc A. Rogers, at the Chicago office of Blake, Cassels & Graydon, has written a paper on, "Employee Claims in Canadian Insolvency Proceedings" (September 15, 2006). The paper addresses the Air Canada and Stelco restructurings.

"Successor Employer Issues: Unions Emerge as Key Stakeholders in Canadian Restructurings"

Lawyers Kevin Morley and Orestes Pasparakis wrote an article for the September 2004 ABF Journal (Issue, Vol. 2, No. 8) entitled "Successor Employer Issues: Unions Emerge as Key Stakeholders in Canadian Restructurings".

The article's byline states:

In Canada, the landscape for loan restructuring has been altered by an increased and more aggressive activism in the bankruptcy process by labor unions clearly dissatisfied with their historical treatment in Canadian insolvencies.

B.C. Labour Relations Code Review Committee releases report examining 14 issues

The Report of the B.C. Labour Relations Code Review Committee to the Minister of Skills Development and Labour was issued on April 11, 2003.

The committee - consisting of Daniel Johnston, John Bowman, Eric Harris, Bruce Laughton and Marcia Smith - was appointed by the BC Government in December 2002 as special advisors under section 3 of the Code to provide advice on 14 specific issues.

The appointment of the committee was preceded by the release of a discussion paper by the Minister of Skills Development and Labour that had set out ideas for potential changes to the Code.

The Report is worth reading for its review of the Code's history alone. The 14 specific issues addressed in the Report are:  read more »