workplace-rights · 🇨🇦 Canada

Wage Earner Protection Program — Get Paid When Your Employer Goes Bankrupt

Difficulty Easy Applies To All Provinces & Territories Last Updated 2026-04-04

Wage Earner Protection Program — Get Paid When Your Employer Goes Bankrupt

What Is It?

The Wage Earner Protection Program gives workers a federal payment when an employer becomes bankrupt, goes into receivership, or enters another qualifying insolvency proceeding and still owes employment-related pay.

It is meant to get money into workers’ hands faster than waiting for the full insolvency process to play out.

Do I Qualify?

  • Your employer is bankrupt, in receivership, or in another qualifying insolvency proceeding
  • You lost your job or are owed wages connected to that insolvency
  • The unpaid amount falls within the eligible wage period
  • You are ready to submit a proof of claim and apply within the deadline

How It Works

  1. File a proof of claim with the trustee or receiver handling the insolvency.
  2. Apply for WEPP through Service Canada.
  3. Service Canada assesses whether you meet the program requirements and what amount is payable.
  4. Your WEPP payment does not necessarily replace other rights you may still have in the insolvency process.

What Most People Don’t Know

  • It can cover more than ordinary wages. Vacation pay, termination pay, and severance may also be covered in qualifying situations.
  • The payment has a cap. WEPP does not guarantee full recovery of everything owed.
  • There is an application deadline. Missing it can cost you the benefit even when the employer clearly owes the money.
  • This is separate from your broader claim in the insolvency. You may still have rights through the trustee or receiver beyond WEPP itself.

Frequently Asked Questions

What can WEPP pay for?


A: It can cover certain unpaid wages, vacation pay, termination pay, and severance in qualifying insolvency situations.

Does WEPP require the employer to be insolvent?


A: Yes. The program is tied to bankruptcy, receivership, or another qualifying insolvency proceeding.

Do I still need to file a proof of claim?


A: Yes. That is usually part of the process and helps establish what you are owed.

Will WEPP pay everything the employer owed me?


A: Not always. The program has a maximum payment limit.

What is the biggest trap?


A: Assuming the trustee or receiver application process automatically counts as a WEPP application too.

Sources