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Acts and Regulations

2011, c.235 - Wage Earners Protection Act

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2011, c.235

Wage Earners Protection Act

Deposited May 13, 2011

Definition of “wages or salary”

1In this Act, “wages or salary” includes all money to which a person is entitled under the Employment Standards Act.

1981, c.79, s.1

Application

2This Act is not intended to apply to an assignment made under the provisions of any Act of the Parliament of Canada relating to or respecting bankruptcy or insolvency.

R.S.1973, c.W-1, s.7

Assignment for benefit of creditors

3When an assignment is made of any real or personal property for the general benefit of creditors, whether the assignment contains preferences or not, the assignee shall pay, in priority to the claim of the ordinary or general creditors and likewise other preferred creditors of the person making the assignment, the wages or salary of all persons in the employment of the assignor at the time of the making of the assignment or within one month before the making of it, not exceeding three months wages or salary, and those persons rank as ordinary or general creditors for the residue, if any, of their claims.

R.S.1973, c.W-1, s.1

Winding-up of company

4In distributing the assets of a company under the provisions of the Winding-up Act, the curator shall pay, in priority to the claims of the ordinary or general creditors of the company, the wages or salary of all persons in the employment of the company at the time of the making of the winding-up order or within one month before the making of it, not exceeding three months wages or salary, and those persons rank as ordinary or general creditors of the company for the residue, if any, of their claims.

R.S.1973, c.W-1, s.2

Deceased employer

5In distributing the assets of any deceased person, the executor shall pay, in priority to the claims of the ordinary or general creditors of the deceased, the wages or salary of all persons in the employment of the deceased at the time of his or her death or within one month before it, not exceeding three months wages or salary, and those persons rank as ordinary or general creditors of the estate for the residue, if any, of their claims.

R.S.1973, c.W-1, s.3

Execution debtor

6(1)All persons in the employment of an execution debtor at the time of the seizure by the sheriff of property of the debtor, or within one month before the seizure, are entitled to be paid by the sheriff out of the money realized on the execution the wages or salary due to them by the execution debtor, not exceeding three months wages or salary, in priority to the claims of the execution creditor, and those persons are entitled to recover from the debtor the balance, if any, of their claims.

6(2)A person claiming the benefit of this section shall file with the sheriff, before the sheriff pays over the money realized on the sale, a statement of claim verified by affidavit made before a commissioner for taking affidavits.

6(3)When a claim is filed with the sheriff, if the sheriff has not already recovered an amount sufficient to satisfy the claim of the execution creditor and also the claim of the employee, the sheriff may seize further property to recover such an amount.

6(4)If a dispute arises as to the correctness of any claim, or the sheriff for the sheriff’s own protection thinks it proper to do so, the sheriff may apply to a judge of The Court of King’s Bench of New Brunswick on petition, stating the facts as to the money in the sheriff’s hands and the claim filed, and obtain a summons calling on the debtor and claimant to appear before the judge at a time and place to be named in the summons, and the judge, on hearing the parties or such of them as appear at the return of the summons, may make such order as the judge considers just, and the sheriff’s obedience to the order is a defence to the sheriff in any proceedings that the claimant or debtor may bring against the sheriff in respect of any sum that the sheriff may pay in accordance with the order.

R.S.1973, c.W-1, s.4; 1979, c.41, s.126; 1984, c.27, s.16; 2013, c.32, s.41; 2023, c.17, s.278

Absconding debtor

7Any person in the employment of an absconding, concealed or absent debtor at the time of a seizure by the sheriff under the Absconding Debtors Act, or within one month before the seizure, is entitled to be paid out of any money realized out of the property of the debtor by the sheriff the wages or salary due that person by the absconding, concealed or absent debtor, not exceeding three months wages or salary, in priority to the claims of the unsecured creditors of the absconding, concealed or absent debtor, and is entitled to share pro rata with other creditors as to the residue, if any, of that person’s claim.

R.S.1973, c.W-1, s.5

Railway company sold under mortgage

8When a mortgage to secure debentures issued by a railway company is foreclosed and the railway sold, or the railway is sold under power of sale in any mortgage, the referee or mortgagee shall, out of the proceeds of the sale after payment of the costs of the foreclosure suit, or if the sale is made under power of sale, pay the wages or salary of all persons employed in the operation of the railway at the time of the commencement of the foreclosure proceedings or proceedings for sale, or within one month before that, not exceeding three months wages or salary, in priority to the claims of bondholders or other creditors, except only employees engaged by the receiver, in case a receiver is appointed, or by the mortgagee in operating the railway.

R.S.1973, c.W-1, s.6

N.B. This Act was proclaimed and came into force September 1, 2011.

N.B. This Act is consolidated to June 16, 2023.