What happens if my Employer goes Bankrupt? Q&A’s:
1. What happens to my wages?
Not only is your wage protected under the Wage Earner Protection Act. but you are also a preferred creditor in any future asset distribution by the Trustee. Please refer to the Human Resources Canada Website: Wage Earner Protection Program: rhdcc.gc.ca
2. What happens to my vacation pay?
As mentioned above, not only is your wage protected under the Wage Earner Protection Act. but you are also a preferred creditor in any future asset distribution by the Trustee. In relation to the payment of wages and vacation pay in Canada, an employee working in Canada, legally has certain protections in the event their employer declares bankruptcy.
3. What am I entitled to?
This is a case-by-case scenario and it depends on whether or not the Trustee is going to continue operating the business, sell the business or liquidate the assets.
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.