When an employer suddenly goes bankrupt or enters receivership, the financial shock for workers can be overwhelming. In 2025, the Canadian government’s Wage Earner Protection Program (WEPP) offers a vital solution—up to $8,844 in financial assistance for employees who are left without their final pay, vacation days, severance, or termination pay. If you’ve recently lost your job due to your employer’s insolvency, here’s exactly how this benefit works and how to claim it.
Table of Contents
Overview
| Feature | Details |
|---|---|
| Max Payment (2025) | $8,844 (7x weekly EI max insurable earnings) |
| Covered Payments | Wages, vacation pay, termination/severance |
| Eligibility | Employees affected by employer bankruptcy or receivership |
| Application Deadline | Within 56 days of bankruptcy or job loss |
| Where to Apply | Online or by mail through Service Canada |
| Official Website | Canada.ca – WEPP |
What Is WEPP?
The Wage Earner Protection Program is a federal benefit designed to help employees who suddenly lose their jobs due to their employer’s insolvency. It offers fast-tracked compensation for unpaid wages and benefits, bridging the gap while workers search for new employment.
The maximum benefit in 2025 is $8,844, which is calculated based on seven times the weekly maximum insurable earnings set under Employment Insurance guidelines. This amount can help cover essential expenses while you’re getting back on your feet.
Who’s Eligible?
To qualify for WEPP in 2025, you must meet all the following conditions:
1. Employer Insolvency
Your employer must have gone bankrupt, entered receivership, or started another formal insolvency process.
2. Unpaid Compensation
You must be owed one or more of the following:
- Regular wages
- Vacation pay
- Termination pay
- Severance pay
These must have been earned within six months before the insolvency or your termination date.
3. Job Loss Timing
You must have been terminated:
- At the time of the bankruptcy/receivership
- Or within the six months leading up to it
4. Not a Manager or Business Owner
You’re not eligible if you:
- Were a director or officer of the company
- Had a controlling stake in the business
- Made key financial decisions about paying wages
5. Trustee Participation
The insolvency trustee or receiver must file a Trustee Information Form (TIF) with Service Canada. This officially starts the WEPP process for affected employees.
How Much You Can Get
The maximum WEPP payment in 2025 is $8,844, which can be used to recover:
- Unpaid wages
- Accrued vacation days
- Severance packages or termination pay
For example, if your employer owes you $6,000 in unpaid wages and $2,500 in severance, WEPP may pay you the full amount since it is under the cap. However, if you’re owed more than $8,844, the excess won’t be covered.
How to Apply for WEPP
Here’s a step-by-step guide to applying for the WEPP benefit:
Step 1
Make sure the bankruptcy trustee or receiver has filed the Trustee Information Form (TIF). You won’t be able to apply without it.
Step 2
Submit a Proof of Claim to the trustee. This lists all unpaid wages and benefits owed to you.
Step 3
Apply within 56 days of:
- The bankruptcy/receivership date
- Your job termination date
- The date the employer stopped operations
You can apply:
- Online via Service Canada’s WEPP portal
- By mail using a paper application (request it from Service Canada)
Step 4
Check your status on your Service Canada account. Once approved, payments are usually processed within 4–6 weeks.
Mistakes to Avoid
- Missing the 56-Day Deadline: Late applications are not accepted.
- Incomplete Documentation: Double-check your Proof of Claim and supporting paperwork.
- Waiting on the Trustee: Don’t assume the TIF has been submitted—follow up directly.
- Tax Surprise: WEPP payments are taxable. You’ll receive a T4A slip to report it at tax time.
Practical Tips
- Keep copies of all forms and correspondence.
- Use direct deposit for faster payment.
- Talk to a financial advisor if you’re unsure about your employment records or claim.
FAQs
Who qualifies for WEPP?
Employees owed wages due to employer bankruptcy or insolvency.
What’s the WEPP limit in 2025?
$8,844 maximum based on Employment Insurance rates.
Is WEPP money taxable?
Yes, you must report it on your tax return.
How long do I have to apply?
You must apply within 56 days of job loss or insolvency event.
Can managers apply for WEPP?
No, directors, owners, and key decision-makers are excluded.
