How to claim sums owed in the event of an employer’s bankruptcy
You might be owed sums of money if the company you work for goes bankrupt. You might be owed:
- wages
- vacation pay and statutory holiday indemnities
- payment of absences for family or parental obligations
- indemnities related to notice of termination of employment or notice of collective dismissal
You could also claim wage adjustments related to pay equity work.
Steps to claim sums owed
1. With the company’s insolvency trustee and the federal government
You must complete the proof of claim provided by the trustee in charge of your employer’s file. In it, you must indicate any unpaid amounts you might be owed.
You must then return the proof of claim to the trustee. When the trustee receives the proof of claim, they liaise with the federal government for the Wage Earner Protection Program.
The federal government’s Wage Earner Protection Program
You may be entitled to an indemnity if you are eligible for this Government of Canada program.
In order for you to benefit from this program, you must send the proof of claim to the trustee within 56 days of the date of the company’s bankruptcy.
2. With the CNESST
If you were unable to recover all the sums owed to you under the Wage Earner Protection Program, the CNESST may, under certain conditions, take legal action against the directors of a company that has gone bankrupt. In this case, you must file a wage complaint.
To support your complaint, you must provide documents if your employer is bankrupt.
Deadlines
In order for the CNESST to take legal action on your behalf against the directors of the bankrupt company, you must file your proof of claim with the trustee:
- within 6 months of the date of bankruptcy if the company is incorporated under federal law, or
- within 12 months of the date of bankruptcy if the company is incorporated under provincial law
The CNESST may not claim amounts for indemnities related to notice of termination of employment or notice of collective dismissal from the directors. You must enter these amounts on the proof of claim form filed with the insolvency trustee if you want to recover these sums.