Recovering wages

My former employer has gone out of business or gone bankrupt.  How do I get my wages back?

There are a number of things you can do.  If your former employer is not bankrupt or subject to an insolvency proceeding, then you should contact the local office of the provincial Employment Standards Branch.  They will investigate your claim.

If your former employer is bankrupt or subject to an insolvency proceeding, then you need to contact the Trustee/Receiver and make a claim.  You will also need to make a claim with the Wage Earner Protection Program through Service Canada.   This program entitles you up to a maximum amount of $3,531 in wages, vacation and severance pay.   Information regarding this program and how former employees can make a claim can be found here.  http://www.servicecanada.gc.ca/eng/sc/wepp/index.shtml .

Ask a Trustee

If you have something you’d like to Ask a Trustee, use this form to submit your question.

And follow @askatrustee on Twitter

Creditors and your Wages

Can creditors garnish my wages?

Yes.  However, in order for a creditor to garnish your wages, they must have judgment. The only exception to this rule is if you owe taxes.  Canada Revenue Agency does not require a Court Order to garnish your wages.  They only need to serve your employer with a Requirement to Pay.

If your wages are being garnished, the filing of a bankruptcy or consumer proposal will stop all garnishees.

Ask a Trustee

If you have something you’d like to Ask a Trustee, use this form to submit your question.

And follow @askatrustee on Twitter

Bankruptcy and Your Job

Will going bankrupt affect my job?

Usually filing for bankruptcy does not affect your job. If you are a member of a professional association, their rules may require you to disclose your bankruptcy.  If you’re bonded in your current position, you may want to contact your personnel department to confirm if there will be any impact on your job.

Ask a Trustee

If you have something you’d like to Ask a Trustee, use this form to submit your question.

And follow @askatrustee on Twitter