Employee Rights In Bankruptcy Protection and Bankruptcy⁄Receivership

• Issued: February 2009
• Content Last Reviewed: June 2009

My company has filed for protection under something called the Companies' Creditors Arrangement Act. How does this affect me? What should I do?

By filing for protection, your company is attempting to re–arrange its debts to be able to survive and avoid bankruptcy.

Federal legislation, the Companies' Creditors Arrangement Act (CCAA), governs how a company deals with protection against bankruptcy, and how monies owing are paid out. What happens next depends on whether you are represented by a union.

If you are represented by a union…

• Your union will provide you with information and assistance.

If you are not represented by a union…

1. You should first contact your employer and determine the status of the protection proceeding. Ask if a Monitor has been appointed and obtain their contact information.
2. Contact the Ontario Ministry of Labour. The ministry will help you determine how much you are owed, and may assist you in preparing the required paperwork to submit to the Monitor.

For more information on the CCAA call Industry Canada at 1–800–622–6232.

My company has gone bankrupt or into receivership, and they owe me wages. How do I get the money they owe me?

Federal legislation, the Bankruptcy and Insolvency Act, dictates how monies owing are paid out to creditors.

You are a creditor if you are owed money by your company. What happens next depends on whether you are represented by a union.

If you are represented by a union…

• Your union will assist you.

If you are not represented by a union…

1. You should obtain the name of the Trustee or Receiver from your company.
2. Once you have this information, contact the Ontario Ministry of Labour. The ministry will help you determine how much you are owed, and may assist you in preparing the required paperwork to submit to the Trustee or Receiver.

For more information on the Bankruptcy and Insolvency Act call Industry Canada at 1–800–622–6232.

I heard that there is a program that will pay me some of the wages owing if my company is bankrupt. How do I access this?

The Wage Earner Protection Program (WEPP) applies to bankruptcies⁄receiverships of an employer that took place after July 7, 2008. This program offers some compensation to employees who are owed money from a bankrupt employer.

You must file a claim with Service Canada within 56 days of the date of bankruptcy or receivership.

For more information on the Wage Earner Protection Program call Service Canada at 1-800-683-6516.

Will filing for protection or bankruptcy⁄receivership affect my pension?

For questions and concerns about pensions, please contact:

The Financial Services Commission of Ontario (FSCO)
Pension Division
5160 Yonge Street, 4^th Floor
P.O. Box 58
Toronto, ON M2N 6L9

E–mail: contactcentre@fsco.gov.on.ca

Telephone:

• Greater Toronto Area: 416–250–7250
• Toll–free: 1–800–668–0128

For further information about the Employment Standards Act, or how your rights are affected by bankruptcy protection or bankruptcy⁄receivership, please contact the Employment Standards Information Centre:

Greater Toronto Area: 416–326–7160
Toll–free Canada–wide: 1–800–531–5551
TTY for hearing impaired: 1–866–567–8893