John Hughie
In 2025, thousands of Canadian workers impacted by sudden employer insolvency may be eligible for a financial lifeline. The Wage Earner Protection Program (WEPP) offers up to $8,844 in compensation for unpaid wages, vacation pay, termination pay, and severance.
If your employer has declared bankruptcy or entered receivership, this benefit could help you get back on your feet faster. Let’s explore who qualifies and how to apply.
What Is the Wage Earner Protection Program (WEPP)?
The WEPP is a government-backed financial benefit designed to assist workers who lose their jobs due to employer insolvency. This includes situations where businesses go bankrupt or are placed into receivership.
The program ensures eligible workers are compensated for wages and other earnings they are legally owed but were not paid due to the financial collapse of their employer.
In 2025, the maximum WEPP payout has been set at $8,844, based on seven times the maximum weekly insurable earnings under employment insurance rules.
What Payments Are Covered?
The WEPP covers the following types of compensation:
- Unpaid wages and salaries
- Accrued vacation pay
- Termination pay
- Severance pay
These payments must have been earned in the six months preceding the employer’s insolvency or the employee’s termination date.
Eligibility Criteria for WEPP 2025
To receive the WEPP benefit, employees must meet the following criteria:
- Employer Insolvency
- Your employer must have declared bankruptcy, entered receivership, or initiated another formal insolvency process.
- Unpaid Compensation
- You must be owed eligible compensation such as wages, vacation pay, or severance earned within six months before termination or insolvency.
- Job Loss Timing
- You must have been terminated: On the date of bankruptcy or receivership, or
- Within six months prior to the insolvency event.
- Position of Employment
- You must not have been: A director or officer of the company
- An individual with a controlling stake
- Someone is responsible for wage decisions
- Trustee Action
- A Trustee Information Form (TIF) must be filed by the appointed insolvency trustee to initiate your WEPP eligibility.
Quick Overview of WEPP 2025
| Feature | Details |
|---|---|
| Maximum Payment | $8,844 |
| Covered Compensation | Wages, vacation pay, severance, termination pay |
| Eligibility Window | Compensation earned within past 6 months |
| Application Deadline | Within 56 days of insolvency or termination |
| Where to Apply | Online via Service Canada or by mail |
| Payment Processing Time | Typically within 4–6 weeks |
How to Apply for WEPP
Step 1: Trustee Action
Confirm that the appointed insolvency trustee has filed the Trustee Information Form (TIF) with the necessary authorities.
Step 2: Submit Proof of Claim
You’ll need to provide a Proof of Claim that outlines the amount you are owed for unpaid wages or other eligible compensation.
Step 3: Complete the WEPP Application
Apply within 56 days of your job loss or your employer’s declared insolvency. Applications can be submitted online or by paper.
Step 4: Await Processing
Once your application is submitted, expect to receive your payment within 4 to 6 weeks, provided all documentation is complete.
Common Mistakes to Avoid
- Missing the 56-Day Deadline: Late applications will not be considered.
- Failing to Check Trustee Filing: Ensure the TIF has been submitted before applying.
- Incomplete Documents: Double-check all supporting documents, including proof of employment and pay statements.
- Ignoring Tax Implications: WEPP payments are taxable income and must be reported during tax filing season.
Tips for a Smooth Application
- Use Direct Deposit for faster payment delivery.
- Keep Copies of all application materials and correspondence.
- Track Application Status through your online account.
- Contact the Trustee to confirm form submissions.
The $8,844 WEPP payout in 2025 is a crucial form of financial protection for workers affected by employer bankruptcy or receivership. If you’ve recently lost your job under these circumstances, it’s essential to act quickly.
Ensure the trustee has filed the necessary forms, submit your claim accurately, and apply within the 56-day window. This benefit can provide a much-needed cushion during a difficult time, helping you bridge the gap until your next opportunity.
FAQs
How much money can I receive from WEPP?
You can receive up to $8,844 in 2025. If you’re owed less than this amount, you’ll be paid the full amount owed. If you’re owed more, you’ll receive the maximum allowed.
What happens if I apply late?
You must apply within 56 days of the insolvency event or your job termination date. Late applications are not accepted under any circumstances.
Is the WEPP benefit taxable?
Yes, the WEPP payout is considered taxable income and must be included on your annual tax return.
