Wage Earner Protection Program Act

Marginal note:Conditions of eligibility

• 5 (1) An individual is eligible to receive a payment if

  • (a) the individual’s employment ended for a reason prescribed by regulation;

  • (b) one of the following applies:

    • (i) the former employer is bankrupt,

    • (ii) the former employer is subject to a receivership,

    • (iii) the former employer is the subject of a foreign proceeding that is recognized by a court under subsection 270(1) of the Bankruptcy and Insolvency Act and

      • (A) the court determines under subsection (2) that the foreign proceeding meets the criteria prescribed by regulation, and

      • (B) a trustee is appointed, or

    • (iv) the former employer is the subject of proceedings under Division I of Part III of the Bankruptcy and Insolvency Act or under the Companies’ Creditors Arrangement Act and a court determines under subsection (5) that the criteria prescribed by regulation are met; and

  • (c) the individual is owed eligible wages by the former employer.

  • (d) [Repealed, 2009, c. 2, s. 343]

• Marginal note:Prescribed criteria — foreign proceeding

  (2) On application by any person, a court may, in a proceeding under Part XIII of the Bankruptcy and Insolvency Act, determine that the foreign proceeding meets the criteria prescribed by regulation. If the court determines that the foreign proceeding meets the prescribed criteria, the court may appoint a trustee for the purposes of this Act.

• Marginal note:Employment in Canada

  (3) An individual who is eligible to receive a payment because of subparagraph (1)(b)(iii) is only eligible to receive a payment in respect of eligible wages earned for employment in Canada and termination pay and severance pay that relate to that employment.

• Marginal note:Deemed bankruptcy

  (4) For the purposes of this Act, if all of the conditions set out in subparagraph (1)(b)(iii) are met, the former employer is deemed to be bankrupt and the date of the bankruptcy is deemed to be the day on which all of those conditions are met.

• Marginal note:Prescribed criteria — other proceedings

  (5) On application by any person, a court may, in proceedings under Division I of Part III of the Bankruptcy and Insolvency Act or under the Companies’ Creditors Arrangement Act, determine that the former employer meets the criteria prescribed by regulation.