Ontario Barrister and Solicitor Practice Exam

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Who is eligible to receive payment under the Wage Earner Protection Program Act when a company declares bankruptcy?

Any creditor of the company
The CEO of the bankrupt company
A former employee owed wages for the 6 months prior to bankruptcy
Government agencies

The correct answer is: A former employee owed wages for the 6 months prior to bankruptcy

The Wage Earner Protection Program Act (WEPPA) is designed to protect employees by ensuring they are paid in the event of their employer's bankruptcy. This means that former employees who are owed wages for the 6 months prior to the company's bankruptcy are eligible for payment under WEPPA. The other options, such as creditors, the CEO, and government agencies, are not eligible because they are not considered employees and are not owed wages by the bankrupt company. The CEO may still be eligible for other forms of compensation or benefits, but not through WEPPA.