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If your employer has gone bankrupt or entered receivership, the Wage Earner Protection Program (WEPP) can offer vital financial relief.
In 2025, eligible workers can receive up to $8,844 to help recover unpaid wages, vacation pay, severance, and termination compensation.
This guide breaks down everything you need to know about eligibility, how to apply, important deadlines, and key benefits of the program.
Overview: What is the WEPP?
The Wage Earner Protection Program (WEPP) is a Canadian government initiative aimed at protecting employees who are left unpaid due to their employer’s insolvency or bankruptcy. The program provides direct payments to eligible workers, ensuring they’re not left financially stranded.
For 2025, the maximum payment is $8,844, which is calculated as seven times the maximum weekly insurable earnings under the Employment Insurance Act. This financial assistance can be critical for those suddenly without a job or income.
Quick Snapshot of the 2025 WEPP Benefit
| Category | Details |
|---|---|
| Maximum Payment (2025) | $8,844 (7x maximum weekly insurable earnings under EI Act) |
| Eligibility | Employer must be bankrupt or in receivership; wages or severance owed |
| Application Deadline | Must apply within 56 days of termination or insolvency event |
| How to Apply | Through Service Canada (online or paper application) |
| Payment Reduction Policy | No longer applies 6.82% reduction (removed post-November 2021) |
| Where to Apply | Government of Canada – WEPP |
Who Can Apply for WEPP in 2025?
To access the WEPP benefit, you must meet the following eligibility requirements:
1. Employer Bankruptcy or Receivership
Your employer must have either declared bankruptcy, entered receivership, or another formal insolvency proceeding.
2. Unpaid Wages or Benefits
You must be owed:
- Wages
- Vacation pay
- Severance
- Termination pay
These owed amounts must fall within six months prior to the insolvency or termination.
3. Termination Within a Qualifying Period
If your employment ended:
- During the insolvency event
- Or up to six months prior
…you may be eligible for compensation under WEPP.
4. Ineligible Individuals
Some individuals are excluded from WEPP:
- Company officers or directors
- Individuals with significant ownership
- Managers who influence financial decisions
5. Trustee Information Form (TIF) Requirement
The TIF must be submitted by the trustee or receiver managing the employer’s bankruptcy. This form lists the employees affected and is a required step to trigger the WEPP process.
How Much Can You Receive?
In 2025, the cap on WEPP payments is $8,844. The actual payment will reflect the total amount of unpaid wages or benefits you’re owed, up to that maximum.
For example, if you’re owed $1,200 in back pay for one week of work and it falls within the eligible time period, you can claim it, as long as the total benefit you claim doesn’t exceed the annual cap.
Step-by-Step: How to Apply for WEPP
Applying for the Wage Earner Protection Program involves several stages:
1. Trustee Submits TIF
Once your employer files for bankruptcy, the trustee or receiver must send a Trustee Information Form to Service Canada.
2. Submit a Proof of Claim
You must file a Proof of Claim with the trustee detailing the exact amount of wages or benefits you are owed.
3. File Your WEPP Application
Submit your WEPP application to Service Canada within 56 days of:
- The bankruptcy or receivership
- The date your job ended
- The date all employees were terminated
Applications can be submitted online or via paper form.
Tips for a Smooth WEPP Application
1. Meet the 56-Day Deadline
Strictly follow the timeline—late applications are not accepted.
2. Double-Check What You’re Owed
Ensure your claim matches your employer’s records to avoid rejection or delays.
3. Apply As Early As Possible
Processing can take weeks, so the earlier you apply, the sooner you’ll receive payment.
What to Expect After You Apply
Once approved, you’ll receive your payment via direct deposit or cheque. You’ll also be issued a T4A slip for tax purposes, as WEPP benefits are taxable income and must be reported when filing taxes.
The 2025 WEPP benefit offers crucial support to workers affected by an employer’s financial collapse. With payments of up to $8,844, it serves as a financial cushion during uncertain times.
If you meet the eligibility criteria, make sure to apply within 56 days, submit all required documents, and verify your claim for a smoother process. This government support could make all the difference as you navigate job loss or wage recovery.
FAQs
Is the WEPP payment taxable in Canada?
Yes, WEPP payments are considered taxable income and must be reported on your annual tax return using the T4A slip provided.
Can I apply for WEPP if I was a part-time worker?
Yes, as long as your employer is bankrupt or in receivership and you are owed eligible wages, part-time workers can apply.
What happens if I miss the 56-day deadline?
Unfortunately, missing the 56-day application window makes you ineligible for WEPP. It’s important to apply as soon as possible after job termination or insolvency.