BILL C-418

An Act to amend the Employment Insurance Act (accessibility and other measures)

This enactment amends the Employment Insurance Act to, among other things

(a) increase the 2023 maximum yearly insurable earnings by 40 %;

(b) establish a hybrid criterion for receiving benefits that consists of hours or weeks of work and consequently eliminate the system of major and minor attachment claimants and the concept of a waiting period;

(c) allow an extension of the qualifying period for a person who is unavailable for work because of a parental leave;

(d) increase the maximum number of weeks for which benefits may be paid in a benefit period by replacing the table in Schedule I;

(e) eliminate the combined weeks of benefits rule, which limits the total number of weeks of benefits to 50 when a person is entitled to both regular and special benefits;

(f) increase the maximum number of weeks for which benefits may be paid in a benefit period because of illness, injury or quarantine from 26 weeks to 50 weeks;

(g) provide that a claimant’s weekly insurable earnings are equal to their insurable earnings in the period of 12 consecutive or non-consecutive weeks for which they received the highest insurable earnings;

(h) increase the rate of weekly earnings that must be paid to a claimant from 55 % to 60 %;

(i) entitle to benefits a person who is unable to work because of domestic violence, an obligation to assume parental responsibilities or a return to education; and

(j) establish the Employment Insurance Fund, to be administered by the Canada Employment Insurance Commission.

The Act also contains transitional provisions and makes a consequential amendment to the Department of Employment and Social Development Act.

His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Maximum yearly insurable earnings

4 (1) For the purposes of subsection 14(1.‍1), section 17, subsection 82(2) and sections 95 and 145, the maximum yearly insurable earnings Insertion start for the year 2023 Insertion end is $ Insertion start 86,100 Insertion end .

Subsequent years

(2) For years subsequent to the year Insertion start 2023 Insertion end , the maximum yearly insurable earnings is the maximum yearly insurable earnings for the preceding year, before rounding down under subsection ( Insertion start 3 Insertion end ), 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.

Rounding down

(3) If the amount calculated in accordance with subsection (2) 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.

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

• (b) has had during their qualifying period

  • Insertion start (i) Insertion end  at least Insertion start 420 Insertion end hours of insurable employment, Insertion start or Insertion end

  • Start of inserted block

    (ii) at least 14 hours of insurable employment per week for 12 weeks.

    End of inserted block

Increase in required hours

7.‍1 (1) The number of hours Insertion start of insurable employment Insertion end that an insured person requires under Insertion start subparagraph 7(2)‍(b)‍(i) or the number of weeks of insurable employment an insured person requires under subparagraph 7(2)‍(b)‍(ii), as the case may be Insertion end , if the insured person accumulates one or more violations in the 260 weeks before making their initial claim for benefits, is increased to the number set out in the following Insertion start tables Insertion end .

(2) The table in subsection 7.‍1(1) of the Act is replaced by the following:

• Start of inserted block

  (a.‍1) unavailable for work because of a parental leave;

  End of inserted block

Extension of benefit period — regular and special benefits

(13.‍02) If, during a claimant’s benefit period, regular benefits were paid, benefits were paid for the reason mentioned in paragraph 12(3)‍(b) in the case where the applicable maximum number of weeks is established under subparagraph 12(3)‍(b)‍(ii), and benefits were paid for fewer than the total number of weeks Insertion start for which benefits may be paid Insertion end , the benefit period is extended so that benefits may be paid up to that total number of weeks. The extension must not exceed 26 weeks.

General maximum — exception for seasonal workers

(2.‍3) Despite subsection (2), the maximum number of weeks for which benefits may be paid in a benefit period to a claimant because of a reason other than those mentioned in subsection (3) shall be determined by reference to the regional rate of unemployment that applies to the claimant and the number of hours of insurable employment of the claimant in their qualifying period if

• (c) because of a prescribed illness, injury or quarantine is Insertion start 50 Insertion end ;

Rate of weekly benefits

14 (1) The rate of weekly benefits payable to a claimant is Insertion start 60 Insertion end % of their weekly insurable earnings, or 33% of their weekly insurable earnings for the weeks for which the claimant is paid benefits under section 23 in the case where the applicable maximum number of weeks is established under subparagraph 12(3)‍(b)‍(ii).

Weekly insurable earnings

(2) A claimant’s weekly insurable earnings are their insurable earnings in the period Insertion start of 12 consecutive or non-consecutive Insertion end weeks Insertion start during their qualifying period for which they received the highest insurable earnings Insertion end .

Maximum rate of weekly benefits

17 The maximum rate of weekly benefits is Insertion start 60 Insertion end % of the maximum yearly insurable earnings divided by 52.

• Start of inserted block

  (b.‍1) unable to work because the claimant returned to education and would otherwise have been available for work; or

  End of inserted block

Exception

(3) A claimant to whom benefits are payable under any of sections 23 to 23.‍3 is not disentitled under paragraph (1)‍(b.‍1) for failing to prove that he or she would have been available for work were it not for the return to education.

First to elect

(1.‍3) If two claimants each make a claim for benefits under this section — or if one makes a claim for benefits under this section and an individual makes a claim for benefits under section 152.‍05 — in respect of the same child or children, the election made under subsection (1.‍1) or 152.‍05(1.‍1) by the first claimant or individual, as the case may be, to make a claim for benefits under this section or under section 152.‍05 is binding on both claimants or on the claimant and the individual.

Extension of period — regular and special benefits

(3.‍22) If, during a claimant’s benefit period, regular benefits were paid, benefits were paid for the reason mentioned in paragraph 12(3)‍(b) in the case where the applicable maximum number of weeks is established under subparagraph 12(3)‍(b)‍(ii), and benefits were paid for fewer than the total number of weeks Insertion start for which benefits may be paid Insertion end , the period referred to in subsection (2) is extended for the same number of weeks as the extension established under subsection 10(13.‍02).

Division of weeks of benefits

(4) If two claimants each make a claim for benefits under this section — or if one claimant makes a claim for benefits under this section and an individual makes a claim for benefits under section 152.‍05 — in respect of the same child or children, the weeks of benefits payable under this section, under section 152.‍05 or under both those sections may be divided between them up to a maximum of 40, if the maximum number of weeks that has been elected under subsection (1.‍1) or 152.‍05(1.‍1) is established under subparagraph 12(3)‍(b)‍(i) or 152.‍14(1)‍(b)‍(i), or up to a maximum of 69, if that number of weeks is established under subparagraph 12(3)‍(b)‍(ii) or 152.‍14(1)‍(b)‍(ii). If they cannot agree, the weeks of benefits are to be divided in accordance with the prescribed rules.

Duration of disqualification

28 (1) A disqualification under section 27 is for the number of weeks that the Commission may determine, but the number of weeks of a disqualification arising under Insertion start any of paragraphs Insertion end 27(1)‍(a) Insertion start to Insertion end (d) or subsection 27(1.‍1) shall not be more than six.

Limitation

(4) No weeks of disqualification Insertion start that have not been served when the claimant’s benefit period ends Insertion end shall be carried forward against Insertion start the Insertion end claimant.

Exception

(7) Subsection (6) does not apply to prevent a claimant from requesting that a benefit period established for the claimant be cancelled under subsection 10(6) and that a benefit period be established for the claimant to enable the claimant to receive special benefits.

• Start of inserted block

  (i.‍1) domestic violence,

  End of inserted block

• (v) obligation to care for a child or a member of the immediate family Insertion start or to assume parental responsibilities Insertion end ,

• Start of inserted block

  (vi.‍1) return to education,

  End of inserted block

• (a) the claimant has, since losing or leaving the employment, been employed in insurable employment for the number of hours required by Insertion start subparagraph 7(2)‍(b)‍(i) or the number of weeks required by subparagraph 7(2)‍(b)‍(ii), as the case may be Insertion end , to qualify to receive benefits; or

Length of disqualification

(2) The disqualification is Insertion start to be no more than six weeks in length Insertion end and, for greater certainty, the length of the disqualification is not affected by any subsequent loss of employment by the claimant during the benefit period.

Exception — recovery of amounts payable

(2) Any amounts payable under this Act by any person and required to be credited to the Employment Insurance Insertion start Fund Insertion end may be recovered out of any benefits payable to that person, without affecting any other mode of recovery.

Annual premium rate setting

66 (1) Subject to subsection (7) and section 66.‍32, the Commission shall set the premium rate for each year in order to generate just enough premium revenue to ensure that, at the end of the seven-year period that commences at the beginning of that year, the total of the amounts credited to the Employment Insurance Insertion start Fund Insertion end after December 31, 2008 is equal to the total of the amounts charged to that Insertion start Fund Insertion end after that date.

• (c) the total of the amounts charged to the Employment Insurance Insertion start Fund Insertion end as of the last day of the most recent month for which that total is known by the Minister; and

Employment Insurance Insertion start Fund Insertion end

Establishment

70.‍2 There is established an Employment Insurance Fund, to be administered by the Canada Employment Insurance Commission.

Payment into Employment Insurance Fund

72 There shall be paid into the Insertion start Employment Insurance Insertion end Fund

Credits to Employment Insurance Fund

73 There shall be credited to the Employment Insurance Insertion start Fund Insertion end and charged to the Consolidated Revenue Fund

Government premiums

74 There shall be credited to the Employment Insurance Insertion start Fund Insertion end and charged to the Consolidated Revenue Fund an amount equal to the premiums required to be paid by Insertion start His Insertion end Majesty in right of Canada as employer’s premiums for persons employed in insurable employment by Insertion start His Insertion end Majesty in right of Canada.

Other credits to Employment Insurance Fund

75 There shall be credited to the Employment Insurance Insertion start Fund Insertion end all amounts paid into the Consolidated Revenue Fund that are

Charges to Fund

77 (1) There shall be paid out of the Employment Insurance Insertion start Fund Insertion end

• (a) all amounts paid as or on account of benefits under this Act, Insertion start other than special benefits Insertion end ;

Special benefits

(1.‍1) There shall be paid out of the Consolidated Revenue Fund all amounts paid as or on account of special benefits under this Act.

• (a) the Minister of Finance shall

  • (i) forecast the amount to be credited to the Employment Insurance Insertion start Fund Insertion end under sections 73 to 75 during the year,

  • (ii) forecast the amount to be charged, during the year, to that Insertion start Fund Insertion end under subsection 77(1) based on, among other things, information provided by the Minister, and

  • (iii) estimate the total, at December 31 of the immediately preceding year, of the amounts credited to that Insertion start Fund Insertion end ; and

• (b) the Minister shall estimate the total, at December 31 of the immediately preceding year, of the amounts charged to that Insertion start Fund Insertion end .

Maximum amount that may be paid under Part II

78 The total amount that may be paid out by the Commission under section 61 and paragraph 63(1)‍(a) and charged to the Employment Insurance Insertion start Fund Insertion end under this Part in a fiscal year must not exceed 0.‍8% of the insurable earnings of all insured persons from which the prescribed amount is deducted under subsection 82(1) in that year as or on account of employee’s premiums, as estimated by the Commission and set out in the Main Estimates tabled in Parliament.

• (c) because of a prescribed illness, injury or quarantine is Insertion start 50 Insertion end ;

• (a) the making of any financial adjustments and for the crediting or charging of the amount of any of those adjustments to the Employment Insurance Insertion start Fund Insertion end , including

waiting period has, in respect of benefits under Part VII.‍1, the same meaning as in subsection 152.‍01(1).‍ (délai de carence)

Benefits

153.‍171 A claimant who qualifies to receive benefits under section 7 and who received the additional 300 hours of insurable employment under paragraph 153.‍17(1)‍(b) may make a claim for benefits under sections 21 to 23.‍3.

Waiver

153.‍191 (1) Despite Insertion start section Insertion end 152.‍15, a claimant need not serve a waiting period if the claim is in respect of benefits under Part I, VII.‍1 or VIII and the benefit period begins on or before October 25, 2020.

Suspension of waiting period

(1.‍1) Despite Insertion start section Insertion end 152.‍15, a claimant who receives benefits under section 21 or 152.‍03 need not serve a waiting period.

Weekly insurable earnings

153.‍192 (1) Despite subsection 14(2), the weekly insurable earnings of a claimant whose benefit period begins on or after September 27, 2020 are deemed to be $909.

Weekly insurable earnings

153.‍197 (1) Despite subsection 14(2), the weekly insurable earnings of a claimant whose benefit period begins during the period beginning on September 26, 2021 and ending on November 20, 2021 are deemed to be $545.

Audit by Auditor General

29 The Auditor General of Canada shall annually audit the accounts and financial transactions of the Commission for the previous fiscal year. The Auditor General shall also audit the Employment Insurance Insertion start Fund Insertion end established by section 70.‍2 of the Employment Insurance Act, and a report of that audit shall be made to the Minister.

SCHEDULE