Directive No. 8R5

The Bankruptcy and Insolvency Act Forms

The Minister of Labour would like to bring into force as soon as possible the Wage Earner Protection Program Act (S.C. 2005, c. 47, s. 1). The new Wage Earner Protection Program (WEPP) will assist workers who are owed wages and vacation pay by an employer who has declared bankruptcy or is subject to receivership. It provides for the payment of unpaid wages and earned vacation pay up to a maximum amount equalling four weeks' insurable earnings under the Employment Insurance Act.

In order for the WEPP to function as intended, it is necessary that the Office of the Superintendent of Bankruptcy (OSB) amend Form 31, "Proof of Claim" (Form 31) that supports the new provisions in the Bankruptcy and Insolvency Act (BIA) which sets out the process for an employee to make a claim in regards to unpaid wages in bankruptcy or receivership.

Also, in keeping with the Government of Canada's commitment to reduce the paper burden by 20 percent, please note that Form 32, "Proof of Claim for Securities Firm Bankruptcies" (Form 32) is revoked in order to streamline administration and eliminate repetition. Forms 31 and 32 have been combined.

Coming into force

The revised Form 31 will come into force on June 30, 2008, for all proceedings commenced under the BIA on, or after, that date. Form 32 is repealed.

Forms 31 and 32 issued prior to June 30, 2008, will continue to apply to proceedings commenced under the BIA prior to the coming into force date of the revised Form 31.

Enquiries

If you require further information, please do not hesitate to contact the OSB office nearest you.

James Callon
Superintendent of Bankruptcy


Issued: June 25, 2008

(This Directive amends Directive No. 8R4 issued on April 11, 2006.)

Interpretation

  1. In this Directive,
    "Act" means the Bankruptcy and Insolvency Act;
    "Forms" means the Forms under the Bankruptcy and Insolvency Act;
    "OSB" means the Office of the Superintendent of Bankruptcy;
    "Rules" means the Bankruptcy and Insolvency General Rules.

Authority and Purpose

  1. This Directive is issued pursuant to the authority of paragraphs 5(4)(c) and (e) of the Act.
  2. The purpose of this Directive is to prescribe amendments to Form 31, "Proof of Claim" and revoke Form 32, "Proof of Claim for Securities Firm Bankruptcies."

Summary

  1. This Directive modifies Form 31 and revokes Form 32 as a result of two initiatives: (1) the coming into force of the Wage Earner Protection Program Act (S.C. 2005, c. 47, s. 1); and (2) the Government of Canada's Paper Burden Reduction Initiative as included in Advantage Canada, the 2007 Fall Economic Statement and the 2008 Budget.

Coming into force

  1. The revised Form 31 will come into force on June 30, 2008, for all proceedings commenced under the Act on, or after, that date.
  2. Form 32 is hereby repealed.
  3. Forms 31 and 32 issued prior to June 30, 2008, will apply to proceedings commenced under the Act prior to the coming into force date of this Directive.

Enquiries

  1. For any questions pertaining to this Directive, please contact your local OSB office.

James Callon
Superintendent of Bankruptcy