Vol. 150, No. 21 — October 19, 2016
Registration
SOR/2016-258 September 30, 2016
WAGE EARNER PROTECTION PROGRAM ACT
Regulations Amending the Wage Earner Protection Program Regulations (Miscellaneous Program)
P.C. 2016-841 September 30, 2016
His Excellency the Governor General in Council, on the recommendation of the Minister of Labour, pursuant to section 41 (see footnote a) of the Wage Earner Protection Program Act (see footnote b), makes the annexed Regulations Amending the Wage Earner Protection Program Regulations (Miscellaneous Program).
Regulations Amending the Wage Earner Protection Program Regulations (Miscellaneous Program)
Amendments
1 The portion of section 2 of the Wage Earner Protection Program Regulations (see footnote 1) before paragraph (a) is replaced by the following:
2 The following amounts are prescribed for the purposes of the definition wages in subsection 2(1) of the Act:
2 Section 9 of the English version of the Regulations is replaced by the following:
9 An application for payment shall, unless circumstances beyond the control of the applicant justify a longer period, be made within 56 days after the latest of the following days:
- (a) the date of the bankruptcy or receivership of the applicant’s former employer,
- (b) the day on which the applicant’s employment ends for any of the reasons referred to in section 3, and
- (c) the day on which the receiver terminates the applicant’s employment.
3 Section 11 of the English version of the Regulations is replaced by the following:
11 An applicant shall, unless circumstances beyond the control of the applicant justify a longer period, request a review under section 11 of the Act in writing no more than 30 days after the day on which the applicant is informed of the Minister’s determination of eligibility or ineligibility, as the case may be.
4 Section 13 of the English version of the Regulations is replaced by the following:
13 An appeal to an adjudicator under section 14 of the Act shall, unless circumstances beyond the control of the applicant justify a longer period, be made within 60 days after the day on which the applicant is notified of the Minister’s decision.
5 (1) Paragraph 15(1)(d) of the English version of the Regulations is replaced by the following:
- (d) a statement as to whether or not the individual delivered a proof of claim for wages owing under section 124 of the Bankruptcy and Insolvency Act; and
(2) Paragraph 15(2)(a) of the English version of the Regulations is replaced by the following:
- (a) 45 days after the date of bankruptcy or after the first day on which there was a receiver in relation to the former employer, as the case may be, unless circumstances beyond the control of the trustee or receiver justify a longer period; or
6 (1) Paragraph 16(1)(b) of the Regulations is replaced by the following:
- (b) a statement informing the individual of their requirement under section 124 of the Bankruptcy and Insolvency Act to deliver a proof of claim for wages owing;
(2) Subsection 16(2) of the English version of the Regulations is replaced by the following:
(2) The trustee or receiver shall provide the information within 45 days after the date of bankruptcy or after the first day on which there was a receiver in relation to the former employer, as the case may be, unless circumstances beyond the control of the trustee or receiver justify a longer period.
7 (1) Subsection 17(1) of the English version of the Regulations is replaced by the following:
17 (1) A person shall provide information under subsection 21(3) or (4) of the Act within 10 days after the day on which they receive the request unless circumstances beyond the control of the person justify a longer period and the person makes a written request to the Minister for an extension before the 10 days have elapsed.
(2) Subsection 17(2) of the French version of the Regulations is replaced by the following:
(2) Une copie de la demande de prolongation doit aussi être transmise au syndic ou au séquestre, selon le cas.
Coming into Force
8 These Regulations come into force on the day on which they are registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Issues
In 2012, the Standing Joint Committee for the Scrutiny of Regulations (SJCSR) raised concerns regarding discrepancies between the French and English wording in the Wage Earner Protection Program Regulations (WEPPR), as well as differences between terminology used in the WEPPR, the Wage Earner Program Protection Act (WEPPA) and the Bankruptcy and Insolvency Act (BIA).
Background
The Wage Earner Protection Program (WEPP) provides financial support for workers in Canada who lose their jobs and are owed wages when their employer files for bankruptcy or is subject to a receivership under the BIA. Workers can receive payments covering regular wages, vacation pay, disbursements, termination pay and severance pay, up to an amount equal to four weeks’ maximum earnings under the Employment Insurance Act. The WEPP was established as part of a reform to Canada’s insolvency system and came into effect on July 7, 2008, along with changes to the BIA.
The WEPP fills a gap in the financial protection of workers by providing them with timely payments following the end of their employment and before the conclusion of lengthy insolvency proceedings. From the inception of the WEPP to February 29, 2016, approximately 92 000 workers have been compensated with an average payment of $2,375. After a payment is issued, the Crown assumes the place of the worker in the insolvency proceedings in order to recover the amount from the employer’s liquidated assets, when possible.
The WEPP is under the responsibility of the Minister of Labour and is delivered by Service Canada. The Labour Program provides administrative guidance and oversight by developing policies on the application of the legislation, reporting to Parliament, and leading communication activities. Service Canada oversees overall program delivery, including the processing of applications and issuing of payments. Trustees and receivers also play an important role in the delivery of the WEPP. They are mandated under the WEPPA to inform workers of the existence of the program and to assist in determining whether a claimant is eligible for payment and what amount should be paid. Lastly, the Canada Revenue Agency is involved in recovery activities, and Innovation, Science and Economic Development Canada and the Office of the Superintendent of Bankruptcy are consulted on insolvency legislation and practices.
Objectives
The objective of the Regulations Amending the Wage Earner Protection Program Regulations (Miscellaneous Program) [the amendments] is to harmonize the French and English text and to ensure consistent use of terminology between the WEPPR and related acts, namely the WEPPA and the BIA.
Description
The amendments address recommendations made by the SJCSR related to language inconsistencies.
For example, various verbs are used in French to describe the provision of documents and information, including “fournir,” “transmettre” and “envoyer,” whereas “provide” is used in English. Changes will ensure a consistent use of these verbs.
Also, there is currently a discrepancy in the verbs used in relation to the delivery of a proof of claim, which is a requirement under the BIA. Therefore, the verb “submit” will be replaced with “deliver” in English and the verb “fournir” with “remettre” in French to improve consistency with the terminology used in the BIA.
“One-for-One” Rule
The “One-for-One” Rule does not apply to the amendments, as there is no change in administrative costs to business.
Small business lens
The small business lens does not apply to the amendments, as there are no costs for small business.
Rationale
The amendments increase clarity of the text, decrease the risk of inconsistent interpretations of the English and French text, and improve consistency between the WEPPR and its related acts (WEPPA and BIA). The amendments are minor in nature, having no substantive impact on parties subject to the Regulations, including workers and insolvency professionals.
Implementation, enforcement and service standards
The Regulations will take effect upon registration.
Contact
Judith Buchanan
Director
Labour Standards and Wage Earner Protection Program
Workplace Directorate, Labour Program
Employment and Social Development Canada
Telephone: 819-654-4362
Email: judith.buchanan@labour-travail.gc.ca
- Footnote a
S.C. 2009, c. 2, s. 347 - Footnote b
S.C. 2005, c. 47, s. 1 - Footnote 1
SOR/2008-222