Employee Rights with Bankruptcy Protection & Bankruptcy Receivership

Table of Contents

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.

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If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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I am so delighted to have found this company. They are the best. Everyone in the office is very nice never to busy to assist you. Thank you David Sklar and Shirley and associates for being you. 😊🌺😊
Trina was amazing and quick. No judgement was made and they all made me feel I made the right decision. Would highly recommend them
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Trina was very easy to work with. Any questions I had were answered promptly. What seemed like a complicated process was explained in a clear manner that wasn't at all intimidating. It made for a more comfortable experience during a turbulent time.
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Jackie is very professional...I would recommend David Sklar to anybody especially knowing how understanding they are.
Kimberley Lyder-Niles
I had Shirley and Kim take care of my finances. From the very first moment I spoke with Shirley I could sense how caring, professional and patient she was. She was also very understanding with my lack of financial knowledge and never made me feel dumb as some other companies have.Her and Kim were always very quick to respond to emails, always available if I called and answered my abundance of questions in such detail that I now believe I have a thorough understanding of how finances work. I am hopeful about my fresh financial start and very grateful I had the privilege of meeting and working with these two beautiful women.I also spoke briefly with Richard over zoom and he to was extremely friendly, patient and made sure I was well taken care of.I could not recommend David Sklar and Associates more. Thank you again.
Shayleen Muzi
Good professional team! Jennifer is the best, helped me through everything and answered all my questions. Made the process easy! Would recommend Jennifer and the team at David Skylar.
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Christine and her team are amazing and professionals. I called for help and she responded right away to help me.thank you and I really appreciated for everything you do.
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Thank you so much for the helpYou took away the most stressful things in our lives which was our dept you guys are amazing and would recommend you to everyone
Kaitlyne Sunas
The staff here are fantastic (Cori handled my visit) and are willing to go above and beyond to help people who need help, I recommend them 100% for people who are looking to move on in good standing.
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