Question Period Note: Temporary Changes to Employment Insurance- September 26, 2021

What were the changes to EI that came into effect on September 26th, 2021?

• From the start of the COVID-19 pandemic, the Government of Canada has put Canadians first, providing them with the support they need to stay safe and healthy.

• As the economy continues to re-open, we recognize that some Canadian workers are still facing labour market challenges linked to the pandemic, and require ongoing income support.

• Through Budget 2021,
we announced a number of temporary EI measures that took effect on September 26, 2021 for a period of one year:
o Implementing a uniform 420 hours of insurable employment entrance requirement for EI regular and special benefits;
o Ensuring that all insurable hours of employment count towards a claimant’s eligibility, as long as their last job separation is found to be valid;
o Allowing claimants to start receiving EI benefits sooner by simplifying rules around the treatment of severance, vacation pay, and other monies paid on separation.

• In addition, seasonal workers in the 13 economic regions that were previously part of the EI Seasonal Worker Pilot Project will continue to benefit from an additional 5 weeks of EI regular benefits until October 2022.
• These temporary measures will maintain flexible and simplified access to EI as the economy recovers and will inform permanent changes to the program.

The temporary changes to EI that came into force on September 26, 2021 for a period of one year simplify and enhance access to EI benefits.

These new EI changes build on the COVID-19 temporary measures that expired on September 25th, with some adjustments to reflect the shift in the economy towards more sustained recovery for workers and employers. The measures were announced as part of Budget 2021, and the applicable legislation received Royal Assent this past June.

EI Access and Eligibility Issues- Overview
• The pandemic highlighted gaps in access for many workers, including part-time and casual workers, and the self-employed.

• The entrance requirement for EI regular benefits varies based on the regional rate of unemployment. This means that two workers with identical employment history could have different eligibility outcomes depending on where they live.

• Targeted consultations with Canadians, labour organizations, employers and other stakeholders will inform future, long-term reforms to make EI more inclusive and responsive in the future.

EI Entrance Requirements- Temporary Measure

Setting a national entrance requirement of 420 hours of insurable employment to qualify for EI benefits makes EI regular and special benefits more uniformly accessible for insured workers across the country for an additional year while the job market continues to improve.

There are corresponding reductions of the earnings-based entrance requirements for fishing benefits ($2,500) and self-employed workers who opt in to special benefits ($5,289).

Pre-COVID rules:
Under pre-COVID rules, the entrance requirement for regular benefits ranges from 420 to 700 hours depending on the regional rate of unemployment, and for all special benefits the entrance requirement is 600 hours.

September 27, 2020-September 25, 2021 temporary measure:
• 420 hour entrance requirement for regular and special benefits with a one-time hours credit allowing workers to qualify with 120 hours of insurable employment.
• Reduced earnings-based entrance requirements for fishing benefits ($2,500) and self-employed workers who opt in to special benefits ($5,000).

Reasons for Separation- Temporary Measure

This temporary amendment ensures that all of a claimant’s insurable hours and employment in their qualifying period count towards eligibility, as long as their most recent job separation is through no fault of their own. It is expected to improve access to the EI program for multiple jobholders and part-time workers.

Pre-COVID rules:
Under pre-COVID rules, if some of those hours were within a job for which the job loss is not a valid reason under EI (e.g., voluntary quit); those hours would not count towards the worker’s eligibility for EI.

September 27, 2020-September 25, 2021 temporary measure:
Only focused on reasons for separation in the 12 week window before a claim.

Monies on Separation- Temporary Measure

This temporary amendment ensures that monies paid on job separation, such as severance pay and vacation pay, neither count as earnings for EI benefits purposes nor affect the timing of a claimant’s receipt of EI benefits. This will enable claimants with monies paid on separation to receive EI benefits at the same time.

Monies on separation is the amount of money given to an employee following separation from their employment. This includes, for example, severance pay or accumulated vacation pay that is paid out upon the job separation.

Pre-COVID rules:
Under pre-COVID EI rules, monies paid to a claimant following separation from a job delays the payment of EI benefits as a result of “allocating” these monies against EI benefits. As a result, claimants cannot collect EI benefits until after their separation monies are exhausted.

September 27, 2020-September 25, 2021 temporary measure:
• Took a somewhat broader view on the types of separation monies that claimants would be able to receive while also receiving their EI benefits (e.g. also included vacation pay and any monies for which the EI Regulations do not account).

Seasonal workers- Temporary Measure

This measure introduced the parameters of the EI seasonal claimant pilot project in legislation to allow more time to conduct stakeholder engagement on how to best support seasonal workers to inform a permanent approach.

Creating a temporary measure similar to the pilot project will give the Government time to strategically engage stakeholders on both the results of the project and on how to provide more consistent and reliable benefits to seasonal workers.

These consultations with seasonal workers and employers will help inform the development and implementation of a permanent approach.

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