BANKRUPTCY/RECEIVERSHIP
Hello, and welcome to another Ministry of Labour employment standards podcast. On today's podcast, we're going to discuss employees' rights when their company either files for protection, or goes bankrupt or into receivership.
Now, if your company has gone bankrupt or is in receivership, and they owe you wages, you become a creditor.
Federal law establishes the order of priorities and the rules concerning the distribution of assets of a bankrupt company. These rules and priorities are spelled out in the federal Bankruptcy and Insolvency Act.
A Trustee in Bankruptcy takes control of the affairs and assets of the bankrupt employer.
In the case of a receivership, the affairs and assets of the insolvent employer are handled by an appointed Receiver.
Even though you may have certain rights under the Employment Standards Act, the act has limited jurisdiction in cases of bankruptcy or insolvency.
If you are represented by a union in your workplace, the union will assist you.
If you are not represented by a union, you should:
First, obtain the name of the Trustee or Receiver from your company. Then, file a claim with the Ministry of Labour. We will help you determine how much you are owed, and we may assist you in preparing the required paperwork to submit to the Trustee or Receiver.
You may also wish to apply to the federal Wage Earner Protection Program.
The Wage Earner Protection Program compensates eligible workers for unpaid wages, vacation, severance and termination pay they are owed when their employer declares bankruptcy, or becomes subject to a receivership under the Bankruptcy and Insolvency Act.
If you require more information on Wage Earner Protection Program call Service Canada at 1-800-683-6516. That's Service Canada at 1-800-683-6516.
If your company has filed for protection under the Companies' Creditor Arrangement Act, your company is attempting to re-arrange its debts to be able to survive and avoid bankruptcy.
The Companies' Creditor Arrangement Act is federal legislation. This legislation governs how your company will deal with protection from bankruptcy, and how monies owing will be paid out.
If your workplace is unionized, and you are represented by the union, the union will provide you with information and assistance if it is needed.
If you are not represented by a union, there are steps you should take:
First, contact your employer and find out the status of the protection proceeding.
The Companies' Creditor Arrangement Act requires the appointment of a Monitor for the proceeding. Ask your employer if a Monitor has been appointed, and obtain the Monitor's contact information.
Second, contact the Ministry of Labour and file a claim if you feel you are owed money. We will help you determine how much you are owed, and in some cases, assist you in preparing the required paperwork for the Monitor.
For more information on your employment rights in the case of a company filing for protection, or becoming bankrupt or under receivership, please go to our website at Ontario.ca - forward slash - labour … that's l-a-b-o-u-r. Once again Ontario.ca - forward slash - labour … that's l-a-b-o-u-r.
Go to the Employment Standards page. On the left side of the page, you'll see topics and publications. Topics and publications will provide you with a link to the Bankruptcy/Receivership guide.
Or you may call our Information Centre at 1-800-531-5551. That's 1-800-531-5551.
And that's it for this employment standards podcast.
Thank you for listening.