FEDERAL REG

SOR/2016-258: Regulations Amending the Wage Earner Protection Program Regulations (Miscellaneous Program)

REGISTRATION OF FEDERAL REGULATION - VIA OIC DATABASE, PRIOR TO PART II OF THE GAZETTE

Registered
September 30, 2016


REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues In 2012, the Standing Joint Committee for the Scrutiny of Regulations (SJCSR) raised concerns regarding discrepancies between the French and English wording in the Wage Earner Protection Program Regulations (WEPPR), as well as differences between terminology used in the WEPPR, the Wage Earner Program Prot... (Click for more)


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Published on September 30, 2016

Bill Summary

SOR/2016-258: Regulations Amending the Wage Earner Protection Program Regulations (Miscellaneous Program)

REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues In 2012, the Standing Joint Committee for the Scrutiny of Regulations (SJCSR) raised concerns regarding discrepancies between the French and English wording in the Wage Earner Protection Program Regulations (WEPPR), as well as differences between terminology used in the WEPPR, the Wage Earner Program Protection Act (WEPPA) and the Bankruptcy and Insolvency Act (BIA). Background The Wage Earner Protection Program (WEPP) provides financial support for workers in Canada who lose their jobs and are owed wages when their employer files for bankruptcy or is subject to a receivership under the BIA. Workers can receive payments covering regular wages, vacation pay, disbursements, termination pay and severance pay, up to an amount equal to four weeks’ maximum earnings under the Employment Insurance Act. The WEPP was established as part of a reform to Canada’s insolvency system and came into effect on July 7, 2008, along with changes to the BIA. The WEPP fills a gap in the financial protection of workers by providing them with timely payments following the end of their employment and before the conclusion of lengthy insolvency proceedings. From the inception of the WEPP to February 29, 2016, approximately 92 000 workers have been compensated with an average payment of $2,375. After a payment is issued, the Crown assumes the place of the worker in the insolvency proceedings in order to recover the amount from the employer’s liquidated assets, when possible. The WEPP is under the responsibility of the Minister of Labour and is delivered by Service Canada. The Labour Program provides administrative guidance and oversight by developing policies on the application of the legislation, reporting to Parliament, and leading communication activities. Service Canada oversees overall program delivery, including the processing of applications and issuing of payments. Trustees and receivers also play an important role in the delivery of the WEPP. They are mandated under the WEPPA to inform workers of the existence of the program and to assist in determining whether a claimant is eligible for payment and what amount should be paid. Lastly, the Canada Revenue Agency is involved in recovery activities, and Innovation, Science and Economic Development Canada and the Office of the Superintendent of Bankruptcy are consulted on insolvency legislation and practices. Objectives The objective of the Regulations Amending the Wage Earner Protection Program Regulations (Miscellaneous Program) [the amendments] is to harmonize the French and English text and to ensure consistent use of terminology between the WEPPR and related acts, namely the WEPPA and the BIA. Description The amendments address recommendations made by the SJCSR related to language inconsistencies. For example, various verbs are used in French to describe the provision of documents and information, including “fournir,” “transmettre” and “envoyer,” whereas “provide” is used in English. Changes will ensure a consistent use of these verbs. Also, there is currently a discrepancy in the verbs used in relation to the delivery of a proof of claim, which is a requirement under the BIA. Therefore, the verb “submit” will be replaced with “deliver” in English and the verb “fournir” with “remettre” in French to improve consistency with the terminology used in the BIA. “One-for-One” Rule The “One-for-One” Rule does not apply to the amendments, as there is no change in administrative costs to business. Small business lens The small business lens does not apply to the amendments, as there are no costs for small business. Rationale The amendments increase clarity of the text, decrease the risk of inconsistent interpretations of the English and French text, and improve consistency between the WEPPR and its related acts (WEPPA and BIA). The amendments are minor in nature, having no substantive impact on parties subject to the Regulations, including workers and insolvency professionals. Implementation, enforcement and service standards The Regulations will take effect upon registration. Contact Judith Buchanan Director Labour Standards and Wage Earner Protection Program Workplace Directorate, Labour Program Employment and Social Development Canada Telephone: 819-654-4362 Email: [email protected] Footnote a S.C. 2009, c. 2, s. 347 Footnote b S.C. 2005, c. 47, s. 1 Footnote 1 SOR/2008-222

This Bill does not amend any statutes.

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