Employment Insurance Act

This Act may be cited as the Employment Insurance Act.

In this Act,

affidavit means an affidavit sworn or affirmed before a commissioner of oaths or any other person authorized to take affidavits; (affidavit)

benefit period means the period described in sections 9, 10, 152.1 and 152.11; (période de prestations)

benefits means unemployment benefits payable under Part I, VII.1 or VIII; (prestation)

board of referees[Repealed, 2012, c. 19, s. 240]

claimant means a person who applies or has applied for benefits under this Act; (prestataire)

Commission means the Canada Employment Insurance Commission; (Commission)

common-law partner, in relation to an individual, means a person who is cohabiting with the individual in a conjugal relationship, having so cohabited for a period of at least one year; (conjoint de fait)

confirmed delivery service means certified or registered mail or any other delivery service that provides proof of delivery; (service de messagerie)

documents includes money, securities, books, records, letters, telegrams, vouchers, invoices, accounts and statements (financial or otherwise); (documents)

dwelling-house means the whole or any part of a building or structure that is kept or occupied as a permanent or temporary residence and includes

a building within the yard of a dwelling-house that is connected to it by a doorway or by a covered and enclosed passageway, and

a unit that is designed to be mobile and to be used as a permanent or temporary residence and that is being used as a residence; (maison d’habitation)

employee’s premium means the premium that a person employed in insurable employment is required to pay under section 67; (cotisation ouvrière)

employer includes a person who has been an employer and, in respect of remuneration of an individual referred to as sponsor or co-ordinator of a project in paragraph 5(1)(e), it includes that individual; (employeur)

employer’s premium means the premium that an employer of an insured person is required to pay under section 68; (cotisation patronale)

employment means the act of employing or the state of being employed; (emploi)

employment benefits[Repealed, 2022, c. 10, s. 387]

employment support measure means a measure established under section 59; (mesure de soutien à l’emploi)

insurable earnings means the total amount of the earnings, as determined in accordance with Part IV, that an insured person has from insurable employment; (rémunération assurable)

insurable employment has the meaning assigned by section 5; (emploi assurable)

insured person means a person who is or has been employed in insurable employment; (assuré)

interruption of earnings means an interruption that occurs in the earnings of an insured person or a person to whom Part VII.1 applies at any time and in any circumstances determined by the regulations; (arrêt de rémunération)

labour dispute means a dispute between employers and employees, or between employees and employees, that is connected with the employment or non-employment, or the terms or conditions of employment, of any persons; (conflit collectif)

long-tenured worker[Repealed, 2016, c. 7, s. 207]

Minister means the Minister of Employment and Social Development, except in Parts IV and VII; (ministre)

overpayment of benefits does not include a benefit repayment as described in Part VII; (versement excédentaire de prestations)

prescribed means prescribed by the regulations or determined in accordance with rules prescribed by the regulations; (Version anglaise seulement)

provincial law means the provisions of any Act of the legislature of a province authorizing, or entitling a person to, the payment of benefits under a plan established by or under that Act; (loi provinciale)

rate of unemployment means the rate of unemployment as determined from time to time in a year; (taux de chômage)

regular benefits means benefits payable under Part I and Part VIII, but does not include special benefits or benefits by virtue of section 24 or 25; (prestations régulières)

special benefits means benefits paid for any reason mentioned in subsection 12(3) or 152.14(1); (prestations spéciales)

umpire[Repealed, 2012, c. 19, s. 240]

week means a period of seven consecutive days beginning on and including Sunday, or any other prescribed period; (semaine)

year means a calendar year. (année)

If the use of rates of unemployment produced by Statistics Canada is required under this Act or the regulations, the Commission shall use those most recently produced at the time it is appropriate or necessary for the Commission to make a final determination in respect of those rates or involving their use.

A document or other communication under this Act or the regulations may be in electronic form and a reference in this Act or the regulations to a form, record, book, notice, request, demand, decision or any other document includes a document in electronic form.

In this Act and the regulations, references to claims for benefits include questions arising in relation to those claims, and references to action on a claim include determining questions in favour of or adversely to claimants.

For the purposes of section 145, the Commission may, with the approval of the Governor in Council, make regulations for establishing how many weeks of benefits a claimant was paid, in order to take into account benefit reductions or deductions in the calculation or payment of those benefits.

The Commission shall monitor and assess the impact and effectiveness, for individuals, communities and the economy, of the benefits and other assistance provided under this Act, including

how the benefits and assistance are utilized by employees and employers, and

the effect of the benefits and assistance on the obligation of claimants to be available for and to seek employment and on the efforts of employers to maintain a stable workforce.

The Commission shall report to the Minister on its assessment annually no later than March 31 following the end of a year. The Commission shall make any additional reports at any other times, as the Minister may request.

The Minister shall lay each report before Parliament within 30 days after receiving it or, if Parliament is not then sitting, on any of the first 30 days that either House of Parliament is sitting after it is received.

Each report shall be referred to such committee of the House of Commons as may be designated or established by the House for that purpose.

For the purposes of subsection 14(1.1), section 17, subsection 82(2) and sections 95 and 145, the maximum yearly insurable earnings is $39,000 until the amount calculated in accordance with subsection (2) for a year, before rounding down under subsection (4), exceeds $39,000, in which case the maximum yearly insurable earnings for that year is that amount, rounded down under subsection (4).

The amount referred to in subsection (1) is the amount equal to 52 times the product obtained by multiplying by

the average for the 12-month period ending on April 30 in the preceding year of the Average Weekly Earnings for each month in that period

the ratio that the average for the 12-month period ending on April 30 in that preceding year of the Average Weekly Earnings for each month in that 12-month period bears to the average for the 12-month period ending 12 months prior to April 30 of that preceding year of the Average Weekly Earnings for each month in that 12-month period ending 12 months prior to April 30 of that preceding year.

For years subsequent to the year in which the maximum yearly insurable earnings exceeds $39,000, before rounding down under subsection (4), the maximum yearly insurable earnings is the maximum yearly insurable earnings for the preceding year, before rounding down under that subsection, multiplied by the ratio that the average for the 12-month period ending on April 30 in that preceding year of the Average Weekly Earnings for each month in that 12-month period bears to the average for the 12-month period ending 12 months prior to April 30 of that preceding year of the Average Weekly Earnings for each month in that 12-month period ending 12 months prior to April 30 of that preceding year.

If the amount calculated in accordance with subsection (2) or (3) is not a multiple of one hundred dollars, the amount of the maximum yearly insurable earnings is rounded down to the nearest multiple of one hundred dollars.

The Average Weekly Earnings for a month is the average weekly earnings of the Industrial Aggregate in Canada for the month as published by Statistics Canada under the authority of the Statistics Act.

Subject to subsection (2), insurable employment is

employment in Canada by one or more employers, under any express or implied contract of service or apprenticeship, written or oral, whether the earnings of the employed person are received from the employer or some other person and whether the earnings are calculated by time or by the piece, or partly by time and partly by the piece, or otherwise;

employment in Canada as described in paragraph (a) by Her Majesty in right of Canada;

service in the Canadian Forces or in a police force;

employment included by regulations made under subsection (4) or (5); and

employment in Canada of an individual as the sponsor or co-ordinator of an employment support measure other than one referred to in paragraph 59(c) or (d).

Insurable employment does not include

employment of a casual nature other than for the purpose of the employer’s trade or business;

the employment of a person by a corporation if the person controls more than 40% of the voting shares of the corporation;

employment in Canada by Her Majesty in right of a province;

employment in Canada by the government of a country other than Canada or of any political subdivision of the other country;

employment in Canada by an international organization;

employment in Canada under an exchange program if the employment is not remunerated by an employer that is resident in Canada;

employment that constitutes an exchange of work or services;

employment excluded by regulations made under subsection (6); and

employment if the employer and employee are not dealing with each other at arm’s length.

For the purposes of paragraph (2)(i),

the question of whether persons are not dealing with each other at arm’s length shall be determined in accordance with the Income Tax Act; and

if the employer is, within the meaning of that Act, related to the employee, they are deemed to deal with each other at arm’s length if the Minister of National Revenue is satisfied that, having regard to all the circumstances of the employment, including the remuneration paid, the terms and conditions, the duration and the nature and importance of the work performed, it is reasonable to conclude that they would have entered into a substantially similar contract of employment if they had been dealing with each other at arm’s length.

The Commission may, with the approval of the Governor in Council, make regulations for including in insurable employment

employment outside Canada or partly outside Canada that would be insurable employment if it were in Canada;

the entire employment of a person who is engaged by one employer partly in insurable employment and partly in other employment;

employment that is not employment under a contract of service if it appears to the Commission that the terms and conditions of service of, and the nature of the work performed by, persons employed in that employment are similar to the terms and conditions of service of, and the nature of the work performed by, persons employed under a contract of service;

employment in Canada by Her Majesty in right of a province if the government of the province waives exclusion and agrees to insure all its employees engaged in that employment;

employment in Canada by the government of a country other than Canada or of any political subdivision of the other country if the employing government consents;

employment in Canada by an international organization if the organization consents; and

the tenure of an office as defined in subsection 2(1) of the Canada Pension Plan.

The Commission may, with the approval of the Governor in Council and subject to affirmative resolution of Parliament, make regulations for including in insurable employment the business activities of a person who is engaged in a business, as defined in subsection 248(1) of the Income Tax Act.

The Commission may, with the approval of the Governor in Council, make regulations for excluding from insurable employment

any employment if it appears to the Commission that because of the laws of a country other than Canada a duplication of contributions or benefits will result;

the entire employment of a person who is engaged by one employer partly in insurable employment and partly in other employment;

any employment if it appears to the Commission that the nature of the work performed by persons employed in that employment is similar to the nature of the work performed by persons employed in employment that is not insurable employment;

the employment of a member of a religious order who has taken a vow of poverty and whose remuneration is paid directly or by the member to the order;

any employment in which persons are employed hardly at all or for nominal remuneration; and

any employment provided under regulations made under section 24 or under an employment support measure other than one referred to in paragraph 59(c) or (d).

The Commission may, with the approval of the Governor in Council, make regulations defining, for the purposes of this section, the expressions casual nature, government, in relation to a government of a country other than Canada or of a political subdivision of the other country, and international organization.

In this Part,

disentitled means not entitled under section 13, 18, 21, 31, 32, 33, 36, 37, 49 or 50 or under the regulations; (inadmissible)

disqualified means disqualified under section 27 or 30; (exclu du bénéfice des prestations)

initial claim for benefits means a claim made for the purpose of establishing a claimant’s benefit period; (demande initiale de prestations)

major attachment claimant means a claimant who qualifies to receive benefits and has 600 or more hours of insurable employment in their qualifying period; (prestataire de la première catégorie)

minor attachment claimant means a claimant who qualifies to receive benefits and has fewer than 600 hours of insurable employment in their qualifying period; (prestataire de la deuxième catégorie)

qualifying period means the period described in section 8; (période de référence)

waiting period means the one week of the benefit period described in section 13. (délai de carence)

A reference in this Part to an amount equal to a percentage or fraction of earnings or benefits in a period shall be rounded to the nearest multiple of one dollar or, if the amount is equidistant from two multiples of one dollar, to the higher multiple.

For the purposes of this Part, the number of hours of insurable employment that a claimant has in any period shall be established as provided under section 55, subject to any regulations made under paragraph 54(z.1) allocating the hours to the claimant’s qualifying period.

For the purposes of paragraphs 18(1)(a) and 27(1)(a) to (c) and subsection 50(8), employment is not suitable employment for a claimant if

it arises in consequence of a work stoppage attributable to a labour dispute;

it is in the claimant’s usual occupation and is either at a lower rate of earnings or on conditions less favourable than those observed by agreement between employers and employees or, in the absence of any such agreement, than those recognized by good employers; or

it is not in the claimant’s usual occupation and is either at a lower rate of earnings or on conditions less favourable than those that the claimant might reasonably expect to obtain, having regard to the conditions that the claimant usually obtained in their usual occupation, or would have obtained if they had continued to be so employed.

After a lapse of a reasonable interval from the date on which an insured person becomes unemployed, paragraph (4)(c) does not apply to the employment described in that paragraph if it is employment at a rate of earnings not lower and on conditions not less favourable than those observed by agreement between employers and employees or, in the absence of any such agreement, than those recognized by good employers.

Unemployment benefits are payable as provided in this Part to an insured person who qualifies to receive them.

An insured person qualifies if the person

has had an interruption of earnings from employment; and

has had during their qualifying period at least the number of hours of insurable employment set out in the following table in relation to the regional rate of unemployment that applies to the person.

[Repealed, 2016, c. 7, s. 209]

An insured person is not qualified to receive benefits if it is jointly determined that the insured person must first exhaust or end benefit rights under the laws of another jurisdiction, as provided by Article VI of the Agreement Between Canada and the United States Respecting Unemployment Insurance, signed on March 6 and 12, 1942.

The number of hours that an insured person requires under section 7 to qualify for benefits is increased to the number set out in the following table in relation to the applicable regional rate of unemployment if the insured person accumulates one or more violations in the 260 weeks before making their initial claim for benefits. Regional Rate of Unemployment / Taux régional de chômage mineure grave très grave subséquente 6% and under/ 6 % et moins more than 6% but not more than 7%/ plus de 6 % mais au plus 7 % more than 7% but not more than 8%/ plus de 7 % mais au plus 8 % more than 8% but not more than 9%/ plus de 8 % mais au plus 9 % more than 9% but not more than 10%/ plus de 9 % mais au plus 10 % more than 10% but not more than 11%/ plus de 10 % mais au plus 11 % more than 11% but not more than 12%/ plus de 11 % mais au plus 12 % more than 12% but not more than 13%/ plus de 12 % mai…

[Repealed, 2016, c. 7, s. 210]

A violation accumulated by an individual under section 152.07 is deemed to be a violation accumulated by the individual under this section on the day on which the notice of violation was given to the individual.

A violation may not be taken into account under subsection (1) in more than two initial claims for benefits under this Act by an individual if the individual who accumulated the violation qualified for benefits in each of those two initial claims, taking into account subsection (1), subparagraph 152.07(1)(d)(ii) or regulations made under Part VIII, as the case may be.

An insured person accumulates a violation if in any of the following circumstances the Commission issues a notice of violation to the person:

one or more penalties are imposed on the person under section 38, 39, 41.1 or 65.1, as a result of acts or omissions mentioned in section 38, 39 or 65.1;

the person is found guilty of one or more offences under section 135 or 136 as a result of acts or omissions mentioned in those sections; or

the person is found guilty of one or more offences under the Criminal Code as a result of acts or omissions relating to the application of this Act.

Except for violations for which a warning was imposed, each violation is classified as a minor, serious, very serious or subsequent violation as follows:

if the value of the violation is

less than $1,000, it is a minor violation,

$1,000 or more, but less than $5,000, it is a serious violation, or

$5,000 or more, it is a very serious violation; and

if the notice of violation is issued within 260 weeks after the person accumulates another violation, it is a subsequent violation, even if the acts or omissions on which it is based occurred before the person accumulated the other violation.

The value of a violation is the total of

the amount of the overpayment of benefits resulting from the acts or omissions on which the violation is based, and

if the claimant is disqualified or disentitled from receiving benefits, or the act or omission on which the violation is based relates to qualification requirements under section 7, the amount determined, subject to subsection (7), by multiplying the claimant’s weekly rate of benefit by the average number of weeks of regular benefits, as determined under the regulations.

The maximum amount to be determined under paragraph (6)(b) is the amount of benefits that could have been paid to the claimant if the claimant had not been disentitled or disqualified or had met the qualification requirements under section 7.

Subject to subsections (2) to (7), the qualifying period of an insured person is the shorter of

the 52-week period immediately before the beginning of a benefit period under subsection 10(1), and

the period that begins on the first day of an immediately preceding benefit period and ends with the end of the week before the beginning of a benefit period under subsection 10(1).

A qualifying period mentioned in paragraph (1)(a) is extended by the aggregate of any weeks during the qualifying period for which the person proves, in such manner as the Commission may direct, that throughout the week the person was not employed in insurable employment because the person was

incapable of work because of a prescribed illness, injury, quarantine or pregnancy;

confined in a jail, penitentiary or other similar institution and was not found guilty of the offence for which the person was being held or any other offence arising out of the same transaction;

receiving assistance under an employment support measure other than one referred to in paragraph 59(c) or (d); or

receiving payments under a provincial law on the basis of having ceased to work because continuing to work would have resulted in danger to the person, her unborn child or a child whom she was breast-feeding.

[Repealed, 2021, c. 23, s. 305]

A qualifying period is further extended by the aggregate of any weeks during an extension for which the person proves, in any manner that the Commission may direct, that the person was not employed in insurable employment because of a reason specified in subsection (2).

For the purposes of subsections (2) and (4), a week during which the person was in receipt of benefits does not count.

[Repealed, 2021, c. 23, s. 305]

No extension under subsection (2) or (4) may result in a qualifying period of more than 104 weeks.

When an insured person who qualifies under section 7 or 7.1 makes an initial claim for benefits, a benefit period shall be established and, once it is established, benefits are payable to the person in accordance with this Part for each week of unemployment that falls in the benefit period.

A benefit period begins on the later of

the Sunday of the week in which the interruption of earnings occurs, and

the Sunday of the week in which the initial claim for benefits is made.

Except as otherwise provided in subsections (10) to (15) and section 24, the length of a benefit period is 52 weeks.

Subject to a change or cancellation of a benefit period under this section, a benefit period shall not be established for the claimant if a prior benefit period has not ended.

An initial claim for benefits made after the day when the claimant was first qualified to make the claim shall be regarded as having been made on an earlier day if the claimant shows that the claimant qualified to receive benefits on the earlier day and that there was good cause for the delay throughout the period beginning on the earlier day and ending on the day when the initial claim was made.

A claim for benefits, other than an initial claim for benefits, made after the time prescribed for making the claim shall be regarded as having been made on an earlier day if the claimant shows that there was good cause for the delay throughout the period beginning on the earlier day and ending on the day when the claim was made.

A claim for benefits referred to in section 23.1 with respect to a family member shall not be regarded as having been made on an earlier day under subsection (4) or (5) if

at the time the claim is made, all benefits that may otherwise have been payable in relation to that claim have already been exhausted;

the beginning of the period referred to in subsection 23.1(4) has already been determined with respect to that family member and the claim would have the effect of moving the beginning of that period to an earlier date; or

the claim is made in any other circumstances set out in the regulations.

A claim for benefits referred to in section 23.2 with respect to a critically ill child must not be regarded as having been made on an earlier day under subsection (4) or (5) if

at the time the claim is made, all benefits that may otherwise have been payable in relation to that claim have already been exhausted;

the beginning of the period referred to in subsection 23.2(3) has already been determined with respect to that child and the claim would have the effect of moving the beginning of that period to an earlier date; or

the claim is made in any other circumstances set out in the regulations.

A claim for benefits referred to in section 23.3 with respect to a critically ill adult must not be regarded as having been made on an earlier day under subsection (4) or (5) if

at the time the claim is made, all benefits that may otherwise have been payable in relation to that claim have already been exhausted;

the beginning of the period referred to in subsection 23.3(3) has already been determined with respect to that adult and the claim would have the effect of moving the beginning of that period to an earlier date; or

the claim is made in any other circumstances set out in the regulations.

Once a benefit period has been established for a claimant, the Commission may

cancel the benefit period if it has ended and no benefits were paid or payable during the period; or

whether or not the period has ended, cancel at the request of the claimant that portion of the benefit period immediately before the first week for which benefits were paid or payable, if the claimant

establishes under this Part, as an insured person, a new benefit period beginning the first week for which benefits were paid or payable or establishes, under Part VII.1, as a self-employed person within the meaning of subsection 152.01(1), a new benefit period beginning the first week for which benefits were paid or payable, and

shows that there was good cause for the delay in making the request throughout the period beginning on the day when benefits were first paid or payable and ending on the day when the request for cancellation was made.

A cancelled benefit period or portion of a benefit period is deemed never to have begun.

A benefit period ends when any of the following first occurs:

no further benefits are payable to the claimant in their benefit period, including for the reason that benefits have been paid for the maximum number of weeks for which benefits may be paid under section 12;

the benefit period would otherwise end under this section; or

[Repealed, 2002, c. 9, s. 12]

the claimant

requests that their benefit period end,

makes a new initial claim for benefits under this Part or Part VII.1, and

qualifies, as an insured person, to receive benefits under this Part or qualifies, as a self-employed person within the meaning of subsection 152.01(1), to receive benefits under Part VII.1.

Whether or not the benefit period has ended, a request under paragraph 8(d) shall be regarded as having been made on an earlier day if the claimant shows that there was good cause for the delay throughout the period beginning on the earlier day and ending on the day when the request was made.

A claimant’s benefit period is extended by the aggregate of any weeks during the benefit period for which the claimant proves, in such manner as the Commission may direct, that the claimant was not entitled to benefits because the claimant was

confined in a jail, penitentiary or other similar institution and was not found guilty of the offence for which the claimant was being held or any other offence arising out of the same transaction;

in receipt of earnings paid because of the complete severance of their relationship with their former employer;

in receipt of workers’ compensation payments for an illness or injury; or

in receipt of payments under a provincial law on the basis of having ceased to work because continuing to work would have resulted in danger to the claimant, her unborn child or a child whom she was breast-feeding.

A claimant’s benefit period is extended by the aggregate of any weeks during an extension of a benefit period under subsection (10) for which the claimant proves, in such manner as the Commission may direct, that the claimant was not entitled to benefits because of a reason specified in that subsection.

If the child or children referred to in subsection 23(1) are hospitalized during the period referred to in subsection 23(2), the benefit period is extended by the number of weeks during which the child or children are hospitalized.

If, during the period referred to in subsection 23(2), the start date of a claimant’s period of parental leave is deferred or a claimant is directed to return to duty from parental leave, in accordance with regulations made under the National Defence Act, the benefit period is extended by the number of weeks during which the claimant’s parental leave is deferred or the claimant is directed to return to duty, as the case may be.

If, during a claimant’s benefit period, the benefit period is extended so that those benefits may be paid up to that maximum total number of weeks.

regular benefits were not paid to the claimant,