If a business goes bankrupt, will its employees get paid?

Employees of a bankrupt business get paid by the Wage Earner’s Protection Program Act. WEPP is designed to pay employees of an employer that is bankrupt or subject to a receivership for amounts owed to them.

WEPP will pay employees for unpaid wages, commissions, vacation pay, pay-in-lieu of notice of termination and severance pay that has been earned during the 6 months prior to a bankruptcy or receivership and which is still unpaid. The maximum payout from WEPP is approximately $3,300 with an additional $1,000 available to cover the unpaid out-of-pocket expenses of travelling salespeople.

If you have questions or concerns respecting your business’ financial situation, we invite you to contact our office. Our highly experienced staff will be happy to discuss your situation.

 

HenryFrancheville headshoulders 2016

Henry M. Francheville, CA, CIRP, Licensed Insolvency Trustee

Licensed Insolvency Trustees
Tel: 1-888-455-6060
www.freshstartatlantic.ca
Fresh start…the road to financial freedom