Changes to ei program

For workers expecting to be laid off before September 25, particularly those with low incomes and open EI claims, this means there are more issues than usual to consider. As the pandemic showed, this will leave us with an EI program that is inadequate. On August 6, , the federal government announced the first round of consultations on changes to the EI program. Additional information and a link to a survey the public are being asked to fill out can be found here.

Levy and Monty Verlint on August 21, To help Canadians qualify for EI benefits, under the new EI program: Those claiming regular and work-sharing benefits who have hours of insurable work or more, will be provided a temporary, one-time credit of insurable hours, and Those claiming EI special benefits, including maternity, parental, sickness, compassionate care, and family caregiver benefits, will be provided a temporary, one-time credit of insurable hours.

Residents of Quebec Residents of Quebec will not be eligible for measures relating to maternity and parental benefits because Quebec provides maternity, paternity, parental and adoption benefits through the Quebec Parental Insurance Plan. Three New Income Support Benefits The government will introduce new legislation to support the implementation of the following benefits, which will be in effect for one year following the end of CERB payments.

A family member with a disability or a dependent because their day program or care facility is closed due to COVID A child, a family member with a disability, or a dependent who is not attending school, daycare, or other care facilities under the advice of a medical professional due to being at high-risk if they contract COVID Get the Latest From Littler.

For workers who received the CERB during their qualifying period, that period has been extended for 16 weeks if their claim began before July 5, or 24 weeks if their claim began after July 5, Finally, the waiting period for maternity, parental, compassionate care, family caregiver and Work Sharing benefits is waived if the employee received the CERB, unless the employee is eligible for maternity or parental top-up payments during the waiting period from a plan offered by their employer.

It does not appear that workers who became eligible for EI benefits prior to March 15, and who exhausted their EI entitlements after March 15, and then began receiving CERB, will be able to re-qualify for EI benefits even with the changes to the EI eligibility rules.

While the announcement did not address the impact on CEWS, the proposed changes raise interesting issues that employers who have been or intend to pay monies to active and inactive employees and seek recovery of CEWS will need to address.

For example, for the four-week CEWS claim period that begins August 30, , the subsidy for inactive employees will be the least of the amount paid to the employee and an amount that is to be set by regulation. That amount has not been prescribed yet, but the government previously indicated that it intends to align the CEWS amount for inactive employees with the amounts available under CERB and EI.

However, the government has not yet confirmed this detail. Another issue that may arise will depend on whether individuals will be able to receive more income under the new EI system or the new government benefits discussed below.

In order to be eligible for EI, an individual must be available for and ready to work. The government has not removed this requirement and has also introduced a similar requirement under the new Canada Recovery Benefit program. This is likely intended to prevent circumstances in which an individual is offered income or work by an employer and declines it in order to continue to receive government support.

This may assist employers who are considering using CEWS to pay their employees as a tool to manage their workforce, including their inactive employees. The government also announced that, while it is easing and simplifying access to EI, EI premium rates will be frozen for two years at the rates. The rate for employers, which is 1. In conjunction with the end of the CERB, the government is introducing three new recovery benefits.

The CRA will provide more details on how and when Canadians can apply at www. The government must introduce and pass new legislation to provide for these new benefits when Parliament returns in September. The CRB will be effective from September 27, , for one year.