Employment insurance (EI) is a government-backed scheme aimed at providing temporary financial benefits to Canadians during a period of unemployment. The program is designed for individuals who lost their jobs “through no fault of their own” – seasonal or mass layoffs, for example – and who despite being physically and mentally fit to work, cannot find employment.
The latest figures from Statistics Canada show that the scheme has an estimated 496,000 beneficiaries last April, about 20,000, or 3.8%, fewer than the previous month and 69% less than the 1.6 million individuals from the same period last year. The number of Canadians receiving EI benefit has actually been dwindling since reaching its peak of approximately 1.7 million in May 2021.
The construction sector accounted for more than a fifth (22%) of all EI recipients in April, the highest among all industries. This was followed by manufacturing (9%), administrative and support services (7%), retail (7%), and accommodation and food services (6%). Overall, these five industries make up over half of all EI beneficiaries across the country.
Not all unemployed individuals, however, are eligible for this benefit. Certain situations can disqualify workers from accessing employment insurance.
How does employment insurance work?
Administered by the Canada Employment Insurance Commission (CEIC), the employment insurance program provides temporary income support not just to unemployed individuals who are actively searching for a new job.
EI benefits can also be accessed by Canadians who took time off work due to an illness or pregnancy, or because they are caring for a newborn or newly adopted child, a critically ill or injured person, or a family member who is seriously sick with “a significant risk of death.” Employees who left their jobs to upgrade their skills may likewise qualify for this kind of financial support.
The government advises employees to apply for EI benefits as soon as they are out of work even if they have not yet received their record of employment (ROE).
“If you delay filing your claim for benefits for more than four weeks after your last day of work, you may lose benefits,” Service Canada warned.
Eligible Canadians can receive their first payment about 28 days after application. Ineligible individuals, meanwhile, are notified about the decision. There is also a one-week waiting period, which acts like a deductible in other types of insurance, before qualified applicants get the benefit. They can access EI for anywhere between 14 and 45 weeks, depending on the unemployment rate in their province and the number of insurable hours they have accumulated in the past year.
Who are eligible for employment insurance?
An individual is eligible for regular EI benefits if they meet the following requirements:
Read more: Workers who resist vaccine mandates may not be eligible for EI, according to feds
How much employment insurance are out-of-work Canadians eligible for?
Employers across the country, whether incorporated or not, are responsible for deducting EI premiums from all workers, regardless of age. These businesses pay a premium of 1.4 times the employee premium unless they qualify for reduced rates under the Premium Reduction Program. Self-employed individuals can also remit EI premiums based on their income to qualify for certain benefits.
For most Canadians, the basic rate for calculating employment insurance benefits is 55% of their average insurable weekly earnings, up to a maximum amount. At the start of the year, the maximum yearly insurable earnings amount is $60,300, meaning each person can receive a maximum amount of $638 per week.
Can you access employment insurance if you were fired from work?
Termination from work does not automatically disqualify an employee from receiving EI benefits, as long as they were not fired for misconduct.
Service Canada defines misconduct as “any inappropriate action, offence, or professional fault committed willingly or deliberately by a person while working for an employer. Misconduct occurs when an employee’s behaviour is in violation of the obligations set out in his contract of employment and when, under normal circumstances, the employee should have known that the actions, omissions, or faults could result in a dismissal.”
Some examples include:
Service Canada also noted that the misconduct does not have to occur during work hours for workers to be terminated because of it.
Some acts that do not constitute misconduct unless done intentionally include:
If an employee feels that their termination is incorrectly classified as due to misconduct, they can dispute this on their EI application. Service Canada will then follow up with the employer and determine the “validity of the cause of allegation and the employee’s resulting eligibility.”
Can you access employment insurance if you quit your job?
To be eligible for EI benefits, employees must have a valid reason for quitting their jobs or what Service Canada calls “voluntary leaving.”
“Voluntarily leaving means that the employee took the initiative, and not the employer, to end the employment,” the agency explained. “[It] is considered without just cause when you do not take every reasonable alternative available to you to avoid unemployment. To be paid regular benefits you must show that quitting your job was the only reasonable alternative in your case, considering all the circumstances. In other words, you took all the necessary steps to avoid being unemployed.”
Some reasons considered valid for leaving a job include:
On its website, Service Canada listed 40 main reasons that may justify voluntarily leaving a job. The guide includes an overview of each reason, why they are considered valid, and alternatives that employees can adopt.
