Labour Minister Lisa Raitt has announced an initiative presented in the federal government’s Economic Action Plan 2012 to protect employees’ long-term disability benefits.
“We recognize the significant challenges faced by workers whose employers go bankrupt, including the possible reduction or loss of long-term disability benefits,” Raitt said at a meeting with Telus employees April 17.
“Workers should have the peace of mind and be confident that the benefits promised to them will be there when they need them the most.”
Raitt said the government plans to introduce legislation to require federally regulated private-sector employers to insure themselves against bankruptcy to protect any long-term disability plans they offer to their employees.
The initiative is designed to complement the Wage Earner Protection Program (WEPP), which provides compensation to employees who are owed wages, vacation, severance or termination pay when their employers go bankrupt.
