[Canada] Wage Earner Protection Program changes in effect

In Ottawa changes to the Wage Earner Protection Program (WEPP) will expand eligibility and put more money in the pockets of the Canadian people, HR Reporter reports.

Specifically, the government has removed the standard 6.82 per cent deduction previously applied to all WEPP payments. The change will give an average of $315 more to anyone who has lost their job and is owed wages by their former employer.

“These changes will help even more workers facing tough times access this critical program and have more money to cover essential needs and see them through to brighter days ahead,” minister of labour Seamus O’Regan Jr., said.

Ottawa is also:

* enabling earlier access to WEPP payments

* extending WEPP coverage to Canadians employed by foreign companies in Canada

* updating the payment for trustee and receiver duties.

The government initially announced the changes in Budget 2021, which was formalised in May. The elimination of the 6.82 per cent deduction was reportedly intended to mimic the Canada Pension Plan and EI contribution amounts normally deducted at source.

Through the WEPP, individuals can claim unpaid eligible wages such as basic wages, disbursements, vacation pay, termination and severance pay up to a maximum amount equivalent to seven weeks of the employment insurance (EI) maximum yearly insurable earnings under the Employment Insurance Act. This amount is $7,579 for 2021.

According to the government, the programme has paid roughly $473 million in wages to nearly 161,000 Canadian workers.

WEPP was created through Bill C-12 - a series of amendments to existing insolvency and wage-protection laws - which was approved in 2008. It came into force later that same year.

Source: HR Reporter

(Links via original reporting)

In Ottawa changes to the Wage Earner Protection Program (WEPP) will expand eligibility and put more money in the pockets of the Canadian people, HR Reporter reports.

Specifically, the government has removed the standard 6.82 per cent deduction previously applied to all WEPP payments. The change will give an average of $315 more to anyone who has lost their job and is owed wages by their former employer.

“These changes will help even more workers facing tough times access this critical program and have more money to cover essential needs and see them through to brighter days ahead,” minister of labour Seamus O’Regan Jr., said.

Ottawa is also:

* enabling earlier access to WEPP payments

* extending WEPP coverage to Canadians employed by foreign companies in Canada

* updating the payment for trustee and receiver duties.

The government initially announced the changes in Budget 2021, which was formalised in May. The elimination of the 6.82 per cent deduction was reportedly intended to mimic the Canada Pension Plan and EI contribution amounts normally deducted at source.

Through the WEPP, individuals can claim unpaid eligible wages such as basic wages, disbursements, vacation pay, termination and severance pay up to a maximum amount equivalent to seven weeks of the employment insurance (EI) maximum yearly insurable earnings under the Employment Insurance Act. This amount is $7,579 for 2021.

According to the government, the programme has paid roughly $473 million in wages to nearly 161,000 Canadian workers.

WEPP was created through Bill C-12 - a series of amendments to existing insolvency and wage-protection laws - which was approved in 2008. It came into force later that same year.

Source: HR Reporter

(Links via original reporting)