Fact Sheet


Bankruptcies and Receiverships


Employees who are not paid because the employer declares bankruptcy or goes into receivership can file a claim with Manitoba Employment Standards.

Employees can also apply to the Government of Canada’s “Wage Earner Protection Program” in these situations.





What should employees do when their employer files for bankruptcy?

The Government of Canada has created the “Wage Earner Protection Program” for employees who have been terminated because their employer is bankrupt or in receivership. This program may provide eligible employees with up to four weeks maximum insurable earnings under the Employment Insurance Program.


Does Employment Standards run this program?

No. The program is run by the Government of Canada and by the bankruptcy trustees and receivers.


Should I contact Employment Standards if my employer declares bankruptcy?

Yes. Employees who have lost their jobs or have not been paid because an employer has closed or declared bankruptcy should file a claim with Employment Standards.  Claims must be filed within 6 months of the last day worked for the employer.  More information can be found on the Filing a Claim and Termination of Employment fact sheets.   


Where can I find more information?

Service Canada runs the program. You can contact them at:

Or, to find a Service Canada office close to you, visit: http://www.servicecanada.gc.ca/cgi-bin/sc-srch.cgi?app=hme&ln=eng


For more information contact Employment Standards:

Phone:     204-945-3352 or toll free in Canada 1-800-821-4307

Fax:           204-948-3046

E-mail:     employmentstandards@gov.mb.ca

Website:  www.manitoba.ca/labour/standards

This is a general overview and the information used is subject to change. For detailed information, please refer to current legislation including The Employment Standards Code, The Construction Industry Wages Act , The Worker Recruitment and Protection Act, or contact Employment Standards.


Available in alternate formats
upon request.

 


Date Published: February 21, 2017