Thank you, Mr. Chair.
The wage earner protection program is a program that compensates workers when their employer files for bankruptcy or becomes subject to receivership. It can make payments to workers in respect of unpaid wages, unpaid vacation pay, severance pay or termination pay.
As part of the amendment—and I forgot to mention that it's division 16, clauses 626 to 653—the main change is an increase to the maximum payment under the program. The current maximum payment is an amount of $3,977. The budget implementation act changes would increase that to $6,960. The maximum amount is pegged to the employment insurance maximum insurable earnings, so it's going from four weeks up to seven weeks. It's important to stress that this is the maximum payment, so it has to be in respect of amounts that workers are owed. It's not a benefit. It's only for wages they are owed. That maximum payment would apply retroactively to February 27, the date of the budget.
In addition to the increase to the maximum payment, there are also amendments to ensure that workers who work past the date of bankruptcy or receivership are still eligible for the wage earner protection program with respect to severance and termination pay.
Eligibility will also be expanded to cover foreign bankruptcies, as well as to make more timely payments when an employer is restructuring under the Companies' Creditors Arrangement Act, or under a proposal under the Bankruptcy and Insolvency Act.
There are also amendments to ensure a greater recovery of amounts paid out by the wage earner protection program, because when a WEPP payment is made, the government is subrogated to those amounts, so we step into the shoes of the worker in the insolvency process and try to recover that money back to the government.
That's an overview of the changes. I'm happy to answer any questions from the members.