What are the employee’s entitlements in the case of an employer subject to both a receivership and a bankruptcy?
Section 7(2) of the Wage Earner Protection Program Act (WEPPA) provides that in this case, the amount that may be paid is the greater of the amount determined under the receivership or the amount determined under the bankruptcy. In order for the most beneficial amount to be determined by Service Canada, it is necessary for both the trustee and the receiver to submit a Trustee/Receiver Information Form for each employee under the relevant bankruptcy and receivership Estate ID.
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