Question Period Note: IMPROVEMENTS TO THE EMPLOYMENT INSURANCE RECOURSE PROCESS

The Board of Appeal was not introduced as a cost saving measure but rather as a return to a tripartite appeal model and decision making that represents workers, employers and the Government equally.

The Government consulted with Canadians, including labour and employer groups to ensure that the Employment Insurance appeal process responds to their needs.

The Government is committed to implementing this reform.

In August 2019, the Government announced significant changes to the Employment Insurance (EI) and Income Security (IS) recourse processes. These changes included client-centric improvements within the Social Security Tribunal (SST) and a return to a locally-based tripartite decision-making model for first-level EI appeals (called EI Board of Appeal) outside of the SST.

The decision to return to a tripartite decision-making model for first-level EI appeals was not a cost reduction initiative, but was informed by consultations with Canadians, and stakeholder groups, and aligns with the Government’s commitment to reforming the EI appeal process by making it more responsive to the needs of Canadians.

The reforms were expected to be implemented effective April 2021. While many of the changes have been actioned, with the advent of the COVID-19 pandemic, the Government’s key priority was to support Canadians through various emergency benefits. As a result, it was not feasible to implement the Employment Insurance Board of Appeal (EI BOA) and other legislative changes associated with the EI recourse process.

Budget 2022 proposed to amend the Employment Insurance Act and the Department of Employment and Social Development Act (DESDA) to enable the creation of the EI BOA. As part of the Budget Implementation Act, 2022, No. 1, legislative amendments were proposed to the DESDA and consequential amendments were proposed to related legislation.

After hearing concerns from several EI stakeholders on the proposed legislation, the EI BOA related clauses of the proposed legislation were removed from the Budget Implementation Act, 2022, on May 31, 2022. The Minister of Employment, Workforce Development and Disability Inclusion committed to undertake further consultations and that new proposed legislation would be introduced.

In Budget 2023, following consultations with Canadians and stakeholders, the Government proposed to introduce amendments to the DESDA (and consequential amendments to other Acts) to establish a new independent tripartite EI BOA to hear cases where claimants disagree with a Service Canada decision regarding their Employment Insurance claims.

On May 12, 2023, and in response to an information request made by a Member of Parliament, the Parliamentary Budget Officer publicly released a report indicating the EI BOA is expected to cost $132M over the next 5 years and $34M ongoing commencing in 2028-2029. This is within reasonable amounts of the remaining original Budget 2019 and subsequent 2019 off-cycle approved funding.

In Budget 2023, the Government proposed to introduce amendments to the Department of Employment and Social Development Act (and consequential amendments to other Acts) to establish a new independent tripartite Board of Appeal (BOA).

On April 20, 2023, Budget Implementation Act, 2023, No. 1 was tabled to allow for a timely implementation of the EI BOA.

The reform to the EI appeal process was informed by consultations with Canadians, including labour and employer groups, to ensure that the changes respond to their needs.

In response to a request from the Parliamentary Budget Officer, the Government provided costing and background information on the implementation and ongoing operation of the Board of Appeal.

The Parliamentary Budget Officer’s report was released publicly at 9:00 am on May 12, 2023.