Employment Insurance (EI)

Subscribe to Employment Insurance (EI)
pregnancy or parental leave top-up
Photo by Kelly Sikkema on Unsplash

As companies struggle to retain their talent in the midst of so many economic and health changes, many are finding new ways to attract and keep employees. A growing number of companies, for instance, are providing their employees with or extending existing pregnancy or parental leave top-up payments to assist families with caregiving responsibilities (present and/or future). 

Pregnancy vs. Parental Leave Basics

First of all, it’s important to distinguish between two commonly confused leaves: pregnancy and parental leave. In Ontario, pregnancy leave is taken by the birthing parent and typically starts before the birth of the child. Parental leave, on the other hand, can be taken by either or both new parents after the birth of the child or when a child comes into the employee’s custody, care and control. Parental leave can also be used by parents who are adopting a child. The birthing parent will typically take a combination of pregnancy and parental leave. These leaves are protected leaves under the Employment Standards Act, 2000 (“ESA”). The ESA sets out the requirements for the leaves, for example, how long an employee must be employed with the employer before they can take the leave, and the employee’s entitlements both during the leave and upon return from the leave. 
Continue Reading Parental Leave, EI and Top-Up Basics

Recent Changes to the Federal Government’s Covid-19 Benefits Schemes
Photo by Neil Thomas on Unsplash

As of Saturday, October 23, 2021, a suite of federal benefits formerly slated for both individuals and small businesses was set to expire following several extension periods. In partial response, the federal government has earmarked $7.4 billion for new programs intended to maintain some level of support for businesses and individuals throughout the Covid-19 pandemic.

What Is Set To Expire?

On October 23, 2021, the Canada Emergency Rent Subsidy (CERS) and the Canada Emergency Wage Subsidy (CEWS) both expired after their initial implementation in 2020. The Budget Implementation Act would allow the government to extend these programs to November 30, 2021, however, anything beyond this time frame would require the introduction of new legislation. Under the CERS, businesses have a monthly cap of $75,000 on eligible expenses that can be claimed per business location, and $300,000 in total for all locations. In our discussion below, there is potential for an increase in this monthly cap. 
Continue Reading Recent Changes to the Federal Government’s Covid-19 Benefits Schemes

Over the course of the past year, many people have had reductions in earnings and received some form of government income assistance - EI, CERB or Canada Recovery Benefit (CRB). In some cases, employees who initially thought that their interruption or reduction in earnings was temporary have had their employment terminated.  In almost all termination situations an employee will be entitled to some form of termination payment from the employer. Employees who are also receiving government income assistance may wonder how their government payments will be impacted by their termination packages.  While not everything is crystal clear at this point, we have some thoughts! Layoffs and the Deemed IDEL  As noted, in some circumstances, employees have been temporarily laid off. During 2020, these layoffs converted into Deemed Infectious Disease Emergency Leaves (IDEL). Unless an employee is terminated, these Deemed IDELs will continue during the COVID-19 Period, which is presently set to end July 3, 2021.  While an employee is not receiving income, or while they are receiving 50% or less of their pre-COVID income due to COVID-19 reasons, they will typically be eligible for EI or the CRB.  Employees who have not had their employment ended at the end of the COVID-19 Period can expect to either be recalled to work or be placed on a temporary layoff. A temporary layoff can continue for up to 35 weeks if the employer continues the employee benefits. An employee can expect to continue to be eligible for CRB or EI after the COVID-19 period should they be continued on a layoff.  Terminations, EI, CERB and CRB An employee who is terminated while on the Deemed IDEL should receive their termination entitlements up to the date of their termination. This means that for the purposes of calculating length of service the employee’s time on the Deemed IDEL should be included. This should also mean that the income replacement benefits that the employee received prior to their termination date should not be required to be paid back, for reasons of double-dipping. The termination package should cover a time period after the termination date and therefore not impact the benefits received prior to the termination date.   While it is not 100% clear how the CRA will treat an employee’s continued entitlement to income replacement benefits following the termination date after the employee receives a termination package there are a few general principles:  EI - Typically an employee will not be entitled to EI when they are receiving income from the employer, and EI will regard termination payments as income. However, the government’s EI FAQs state that “As a temporary measure most separation monies received when you are laid off will not affect the payment of your EI benefits for the claims established on or after September 27, 2020 for one year.” This suggests that EI payments with respect to COVID-19 may be treated differently.  CERB - While the period for which employees could receive CERB is over, the government CERB FAQs indicate that “A severance payment does not impact an individual’s eligibility for the Canada Emergency Response Benefit.” This suggests that receiving a termination package will not disentitle an employee from their CERB. In a recent decision the Ontario Superior Court agreed - see Iriotakis v. Peninsula Employment Services Limited, 2021 ONSC 998. CRB - The CRB will likely be treated similarly to the CERB, and we expect that an employee will not have to repay the CRB if they also receive a termination package so long as they continue to maintain eligibility. An employee will be required to re-pay $0.50 of CRB for every dollar of net income earned above $38,000 in the calendar year.  Terminated employees who have been receiving income replacement benefits should get advice so that they can understand the impact of their termination packages on their entitlements to these benefits.Over the course of the past year, many people have had reductions in earnings and received some form of government income assistance – EI, CERB or Canada Recovery Benefit (CRB).

In some cases, employees who initially thought that their interruption or reduction in earnings was temporary have had their employment terminated. 

In almost all termination situations an employee will be entitled to some form of termination payment from the employer. Employees who are also receiving government income assistance may wonder how their government payments will be impacted by their termination packages. 

While not everything is crystal clear at this point, we have some thoughts!
Continue Reading Termination Payments and Repaying Government Benefits – EI, CERB and CRB

importance of record of employment
Photo by Scott Graham on Unsplash

Employers may brush off the importance of a Record of Employment (ROE) or even have their accountant handle all the details, but it is an important document in the realm of employment law. This document becomes significant when it comes to topics such as terminations, lay-offs, resignations, disability, illness, quarantine, a leave of absence and maternity or parental leaves.  So here are the top 6 things that every employer should know when it comes to a Record of Employment.

Firstly, what is an ROE?

An ROE is a form that employers complete for employees who are receiving insurable earnings who have stopped working and are experiencing an interruption of earnings. This document is a requirement of the Employment Insurance Program. An ROE must be completed even if the employee is not applying for Employment Insurance Benefits.
Continue Reading Top 6 Things to Know Regarding ROEs

government income replacement programs post-CERB
Photo by Christina @ wocintechchat.com on Unsplash

Buh-Bye CERB

The federal government has introduced a suite of new income replacement programs which will take over from the Canada Emergency Response Benefit (CERB) once it ends on October 3, 2020. Note that individuals can still apply for the CERB until December 2, 2020, but the benefit application must be for income lost during the time period March 15, 2020 to October 3, 2020. FAQs about the CERB and the various application processes can be found on the government site here. 

Remember that while it has been very easy to get the CERB, it is not properly available to those who refuse to return to work or who quit their jobs because being on the CERB is more lucrative than working.
Continue Reading New Government Income Replacement Benefits

Answers to frequently asked questions from employers regarding COVID-19 – the impact, rules and best practices for addressing the global coronavirus outbreak in the workplace. (Last Updated April 1, 2020).

Further free resources can be found here.

Should you need legal advice on how to manage your workplace during the COVID-19 outbreak, please get in

Answers to frequently asked questions from employers regarding COVID-19 – the impact, rules and best practices for addressing the global coronavirus outbreak in the workplace. (Last Updated March 30, 2020).

Further free resources can be found here.

Should you need legal advice on how to manage your workplace during the COVID-19 outbreak, please get in

COVID-19The measures introduced to protect us all from COVID-19 have had a huge economic impact on individuals and businesses. The federal government has been rolling out – and changing – various relief measures over the past few weeks. 

Today we will outline two new measures which will likely be helpful to many of the businesses …

FAQs for Employers – Frequently asked questions by employers needing more information on the impact, rules and best practices for addressing the global coronavirus outbreak. (Last Updated March 26, 2020).

Further free resources can be found here.

Should you need legal advice on how to manage your workplace during the COVID-19 outbreak, please get in