An Act to amend the Bankruptcy and Insolvency Act (unpaid wages to rank first in priority in distribution)

This bill was last introduced in the 37th Parliament, 3rd Session, which ended in May 2004.

This bill was previously introduced in the 37th Parliament, 2nd Session.

Sponsor

Pat Martin  NDP

Introduced as a private member’s bill. (These don’t often become law.)

Status

Not active, as of Oct. 24, 2002
(This bill did not become law.)

Elsewhere

All sorts of information on this bill is available at LEGISinfo, provided by the Library of Parliament. You can also read the full text of the bill.

Bankruptcy and Insolvency ActRoutine Proceedings

October 24th, 2002 / 10:25 a.m.
See context

NDP

Pat Martin NDP Winnipeg Centre, MB

moved for leave to introduce Bill C-253, an act to amend the Bankruptcy and Insolvency Act (unpaid wages to rank first in priority in distribution)

Mr. Speaker, hopefully this bill will be a little less controversial.

The bill seeks to amend the bankruptcy act so that unpaid wages owing to an employee at the time of a bankruptcy will rank first in priority in terms of distribution of the assets of the company. The purpose is to give unpaid wages and other compensation due for benefits in a bankruptcy first priority, the logic being that other secured creditors know full well the risk of a possible bankruptcy of the company in which they are investing and compensate for that by charging interest and making profit on the loan.

In the case of an employer and employee relationship, all that exists is the trust relationship that the employee will be compensated fairly for hours worked. Therefore, it is up to Parliament to add the protection for the worker in this case, and I seek broad support from the House on that matter.

(Motions deemed adopted, bill read the first time and printed)