What Happens when your Company files for protection under the Companies’ Creditors Arrangement Act (CCAA)?
When this happens, the company that you work for is filing for protection, and working to re-organize the debts that your company has, and working to help survive and to work to avoid filing for bankruptcy.
The CCAA governs how a company should deal with bankruptcy protection, and how any money that is owed is also paid out.
What should you do?
This will depend on if you are in a union or not.
If you are a member of a union
In cases such as this where a union represents you, your union will then provide you with the necessary information regarding the entire situation.
If you are not a member of a union
- You will need to find out the status of the protection your company is seeking. Find out if a monitor was appointed, if so, get their contact info.
- Contact the Ontario Ministry of Labour. They can help assist you with finding out how much you are owed. They may be able to provide some assistance with arranging the needed paperwork that will be submitted to the monitor.
Company has gone into receivership or filed for bankruptcy
When the company you work for, goes into bankruptcy or has gone into receivership, the Bankruptcy and Insolvency Act will then dictate how the money that is owed, is paid out to all its creditors.
What should you do?
This will depend on if you are in a union or not.
If you are a member of a union
Then you will need to get the necessary information from your union regarding it.
If you are not a member of a union
Get the necessary information regarding the receiver or the trustee from your company.
When you have this info, the Ontario Ministry of Labour can help find out how much money your company owes you. They may be able to provide some assistance with arranging the needed paperwork that will be submitted to the receiver or the trustee.
Additional Info
The WEPP Wage Earner Protection Program applies after July 7, 2008 for receiverships or bankruptcies of an employer. The program helps provide some compensation for employees that are owed monies from their bankrupt employer.
In this case, a claim must be filed with Service Canada within 56 days of the date of Receivership or Bankruptcy.
