Employment Insurance During COVID-19
Understanding Employment Insurance (EI) During COVID-19
Are you unable to work, for one reason or another, due to the COVID-19 outbreak? Will you be eligible for employment insurance benefits that are made available through the Federal Government? Whitten & Lublin Employment & Labour Lawyers have developed this practical guide to assist employees in understanding their Employment Insurance rights.
The Employment Insurance (“EI”) program is designed to provide temporary income support to eligible unemployed workers in certain circumstances. There are 3 different types of EI benefits that are the most relevant as a result of the COVID-19 pandemic:
1. EI regular benefits;
2. EI sickness benefits; and
3. Canada Emergency Response Benefit.
These benefits are discussed in detail below.
EI Regular Benefits
EI regular benefits pre-exist COVID-19. They are available if you lose your job through no fault of your own. These circumstances include:
– if you are unable to work because your employer has a shortage of work.
– if you were laid-off.
– if you were terminated from your job and it was not for misconduct (i.e. restructuring, lack of work, shutdowns, poor fit and poor performance).
To receive regular benefits, you must be available for and able to work, but unable to find a job.
Do you qualify?
You should be entitled to EI regular benefits if you:
– were employed in insurable employment (a portion of your pay was withheld and provided to the government).
– lost your job through no fault of you own.
– have been without work and without pay for at least seven consecutive days in the last 52 weeks.
– have worked for the required number of insurable employment hours in the last 52 weeks or since the start of your last EI claim, whichever is shorter.
– are ready, willing and capable of working each day.
– are actively looking for work.
The number of hours of insurable employment you need to qualify for EI depends on the unemployment rate in your area, but is from 420 and 700 hours in the last 52 week period.
Unfortunately, you must have lost your job to become entitled to EI regular benefits. You cannot apply if your hours were reduced, even if they were reduced substantially. The requirement is that you must be without work and without pay for at least seven consecutive days.
You should apply for EI regular benefits as soon as you stop working. You can apply for benefits even if you have not yet received your 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.
You can complete your application for regular benefits online through the Service Canada website.
Interaction between EI regular benefits and CERB
If the reason you lost your job is related to COVID-19, and you became eligible for EI regular benefits on March 15, 2020 or later, please note your EI claim will be automatically processed the CERB.
If you have recently exhausted regular benefits and are unable to find work for reasons related to COVID-19, you are eligible for the CERB.
How much can you receive?
For most people, the basic rate for calculating EI regular benefits is 55% of the average insurable weekly earnings, up to a maximum of $573 per week. The number of weeks for which you can receive EI regular benefits depends on the unemployment rate where you live, but is anywhere from 14 weeks to a maximum of 45 weeks.
If your weekly earnings vary or your income is variable, Service Canada uses a specific number of your highest paid weeks of employment, or your “best weeks.” The number of best weeks they use is based on the unemployment rate where the employee lives, but is anywhere between 14 and 22 weeks.
What if you are still earning some income while receiving EI regular benefits?
If you work while receiving regular EI regular benefits, you will be able to keep 50 cents of your EI benefits for every dollar you earn, up to 90 percent of the weekly insurable earnings used to calculate your EI benefit amount. Once you earn more than 90 percent, the amount you earn is deducted dollar for dollar from your EI benefits.
EI Sickness Benefits
Canada Emergency Response Benefit
EI or CERB?
You cannot receive both EI benefits and the CERB for the same period.
If you were receiving EI regular or sickness benefits before March 15, 2020, you will continue to receive these benefits until the end of your benefit period. Similarly, if you became eligible for EI regular or sickness benefits before March 15, 2020, your claim will be processed as an EI claim. In both of these scenarios, you will not receive the CERB unless your benefits end before October 3, 2020, after which you may apply for the CERB if you meet the eligibility requirements and are still unable to return to work due to COVID-19.
If you became eligible for EI regular or sickness benefits on March 15, 2020 or later, your claim will be automatically processed through the CERB.
If you have already applied for EI and you became eligible for EI regular or sickness benefits on March 15, 2020 or later, your claim will be automatically processed through the CERB. You can still access EI regular and sickness benefits if you are still unemployed after the 16-week period covered by the CERB.
How much can you receive?
The CERB will provide $2,000 a month for up to 16 weeks.
Work-Sharing Program
Family Supplement
You may be eligible for an increase to the amount of EI benefits you can receive if:
– your net family income does not exceed $25,921 per year.
– you have children and your spouse receives the Canada Child Benefit.
The family supplement rate is based on your net family income up to a maximum of $25,921 per year and the number of children in your family and their ages.
The family supplement may increase your EI benefit rate up to 80% of your average insurable earnings.
As of April 29, 2020, the family supplement has been extended to CERB claimants as well.
Quick Questions and Answers
How Whitten & Lublin Employment & Labour Lawyers can help you?
We have the proficiency to guide employees through the practical impacts that COVID-19 may have on your job. For example, we can:
– identify your legal rights in the workplace, including health and safety, constructive dismissal, wrongful dismissal, human rights or discrimination;
– guide you through the statutory benefits that may be available;
– assist with employment insurance questions;
– assist with communicating with your employer to ensure your important rights are protected; and
– assist with any other form of workplace-based dispute.
Useful Links
Government of Canada information on EI sickness benefits: https://www.canada.ca/en/services/benefits/ei/ei-sickness.html
Government of Canada information on EI regular benefits: https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit.html
Government of Canada information on the new Emergency Care Benefit and other economic relief measures: https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html
** Disclaimer. The information presented here is a guide only and is not intended to form specific legal advice or establish a solicitor-client relationship. The information is also subject to change. The date of publication is April 30, 2020.
Do you need workplace legal advice?
Whitten & Lublin Employment and Labour Lawyers is a nationally recognized team, assisting employees in all aspects of workplace legal disputes. Don’t take a chance with your case. Consult the law firm with a team of proficient employment and labour law lawyers.
Toronto & GTA: (647) 946-1276