Bill C-501: An Act to amend the Bankruptcy and Insolvency Act (termination and severance pay)

C-501 Third Session, Fortieth Parliament, 59-60 Elizabeth II, 2010-2011 HOUSE OF COMMONS OF CANADA BILL C-501 An Act to amend the Bankruptcy and Insolvency Act (termination and severance pay) Reprinted as amended by the Standing Committee on Industry, science and Technology as a working copy for the use of the House of Commons at Report Stage and as reported to the House on March 1, 2011 Mr. Rafferty 403073 SUMMARY This enactment amends the Bankruptcy and Insolvency Act to ensure that the claim of a clerk, servant, travelling salesperson, labourer or worker who is owed termination and severance pay by a person is secured as of the date of the bankruptcy or receivership by security on the person's current assets. Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca .vis1 {position: absolute;display:block;} .vis2 {position: static;} 3rd Session, 40th Parliament, 59-60 Elizabeth II, 2010-2011 house of commons of canada BILL C-501 An Act to amend the Bankruptcy and Insolvency Act (termination and severance pay) R.S., c. B-3; 1992, c. 27, s. 2 Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. [Deleted] 2. The Bankruptcy and Insolvency Act is amended by adding the following after subsection 81.3(1): Security for termination or severance pay 81.3 (1.1) The claim of a clerk, servant, travelling salesperson, labourer or worker who is owed termination and severance pay by a bankrupt, less any amount paid by the trustee or by a receiver for that termination or severance pay, is secured as of the date of the bankruptcy by security on the bankrupt's current assets as of the date of the bankruptcy. 3. The Act is amended by adding the following after subsection 81.4(1): Security for termination or severance pay 81.4 (1.1) The claim of a clerk, servant, travelling salesperson, labourer or worker who is owed termination and severance pay by a person who is subject to a receivership, less any amount paid by a receiver or trustee for that termination or severance pay, is secured by security on the person's current assets that are in the possession or under the control of the receiver. 4. [Deleted] 5. [Deleted] 6. [Deleted] 7. [Deleted] Published under authority of the Speaker of the House of Commons