By Richard D. (Rick) Pallen, Jean-Daniel Breton, Sheldon Title and John Haralovich WEPPA Changes on the Way O n October 29, 2018, Bill C-86, Budget Implementation Act, 2018, No. 2 was tabled, which includes some important amendments to the Wage Earner Protection Program Act (WEPPA). If it is passed in its current form and receives Royal Assent, the significant changes that would then become effective are: 1.  Increase the maximum payment under the program (WEPP) from four to seven times the maximum weekly insurable earnings under the Employment Insurance Act (EIA), or a maximum benefit of about $6,960 in 2018.1 Once effective, this increased coverage will apply retroactively to bankruptcies and receiverships occurring on or after February 27, 2018. This change is very positive from the employee’s perspective as it provides a greater benefit to displaced employees at a time when resources may be necessary to reduce the stress related to finding alternative employment. We note that since no change is proposed regarding the limits referred to in sections 81.3 and s.81.4 of the Bankruptcy and Insolvency Act (BIA), this change should not affect secured creditors. 2.  Eligibility for payments: a.  Employees who work after the date of bankruptcy or receivership will no longer risk losing coverage for severance and/or termination pay. The legislation will be modified to include both severance and/or termination in respect of an employment that ends before the bankruptcy or receivership during the period of eligibility, and an employment that ends after bankruptcy or receivership up to the trustee’s discharge or the date on which the receiver completes its duties. This change removes uncertainty for employees that were concerned about losing an entitlement to severance or termination pay and should help insolvency professionals that need to retain employees to wind down the affairs of the insolvent employer. 1  The benefits payable under the WEPP are subject to a reduction for all amounts paid by the trustee or receiver after the bankruptcy or receivership on account of eligible wages, and a further deduction of 6.82%. A modi- fication is proposed to this provision that might provide relief from such a deduction in prescribed circumstances. As the new regulations have not been drafted, we do not know the extent of the relief that may be granted or in what circumstances. 38 Rebuilding Success Spring/Summer2019