What Happens If Your Employer Declares Bankruptcy?

What happens to your wages?

What happens to your vacation pay?

As mentioned above, not only is your wage protected under the Wage Earner Protection Act. but you are also a preferred creditor in any future asset distribution by the Trustee. In relation to the payment of wages and vacation pay in Canada, an employee working in Canada, legally has certain protections in the event their employer declares bankruptcy.

What you are entitled to?

This is a case-by-case scenario and it depends on whether or not the Trustee is going to continue operating the business, sell the business, or liquidate the assets.