Question Period Note: RECENT CHANGES TO WAGE EARNER PROTECTION PROGRAM REGULATIONS

What improvements have recently been made to Wage Earner Protection Program (WEPP) Regulations?

• The WEPP is a Government of Canada program that provides financial support for eligible wages owing to workers when their employer files for bankruptcy or becomes subject to receivership.

• New WEPP Regulations came into force on November 20, 2021. These changes broaden program access by:
o enabling earlier WEPP payments when an employer engages in liquidating restructuring proceedings;
o extending coverage to individuals if their employer enters formal insolvency proceedings in another country; and
o updating the payment of trustee and receiver fees and expenses for low asset insolvencies so that more individuals can access the WEPP.

• Budget 2021 also announced the elimination of the 6.82 % deduction that was applied to all WEPP payments.

• Application of this offset ended on November 20, 2021, and its removal puts an average of $315 more in the pockets of Canadians who have lost their job and are owed eligible wages by their insolvent employer.

The WEPP provides financial support to Canadian workers, under federal, provincial and territorial jurisdictions, who are owed money when their employer files for bankruptcy or becomes subject to a receivership. Workers can receive a one-time payment of up to an amount equivalent to seven times the maximum weekly insurable earnings under the Employment Insurance Act ($8,177 for 2022). WEPP has an annual allocation from the Consolidated Revenue Fund of $49.25 million.

Following up on a Budget 2018 commitment, the WEPP Act was amended in December 2018 as part of Budget Implementation Act, 2018, No. 2, to increase the maximum payment from the equivalent of four to seven weeks of Employment Insurance maximum weekly insurable earnings. This increase came into effect immediately and applied retroactively to the date of the Budget announcement of February 27, 2018.

However, there were two amendments made at that time that required updated regulations. These changes came into effect on November 20, 2021, and:
• enable more timely payments to individuals if their employer engages in a lengthy restructuring proceeding before entering bankruptcy or becoming subject to receivership; and
• provide WEPP coverage to employees if their employer is bankrupt or subject to a receivership in another country.

In addition, the new WEPP regulations:
• updated the payment of trustee and receiver fees and expenses for low asset insolvencies so that more individuals can access the WEPP; and
• eliminated of the 6.82 % deduction that was applied to all WEPP payments.

These new regulations came into force on November 20, 2021.

WEPP is delivered by Service Canada and information can be obtained by visiting a local Service Canada office, their web site www.servicecanada.gc.ca, or by calling the WEPP call centre at 1-866-683-6516.

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