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Olivia Cicchini, Employment Law Expert
(Last updated )
Olivia Cicchini, Employment Law Expert
(Last updated )
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Employment Insurance (EI) provides benefits to employees who are looking for work after they lose their jobs through no fault of their own—for example, being laid off. It also provides benefits to workers who need to take time off work due to specific life events including illness, pregnancy, caring for a newborn, or a critically ill or injured person.
As an employer, you play an important role by meeting your responsibilities regarding the EI program. Here is everything employers need to know about employment insurance.
Workers receive EI benefits if they have paid premiums in the past year and meet qualifying and entitlement conditions.
Based on the unemployment rate in your area, employees need between 420 and 700 hours of insurable employment during the qualifying period to qualify for regular benefits.
The Employment Insurance program is regulated by the Government of Canada and is overseen by Employment and Social Development Canada. The payments that employees receive are taxable income and are, where applicable, deducted from federal and provincial or territorial taxes.
The most important thing you need to know as an employer about Employment Insurance is issuing a record of employment (ROE). As an employer, you must issue records of employment for employees who have received insurable earnings and who experience an interruption of earnings when they stop working.
As an employer, you need to subtract EI premiums from each dollar of your employees’ insurable earnings, up to a yearly maximum. You must also contribute 1.4 times the amount of EI premiums that you take away from your employees’ pay.
If you provide your employees with a short-term disability plan that meets certain requirements, you may be entitled to pay an EI premium rate through the EI Premium Reduction Program that is lower than the standard employer rate.
Like the EI waiting period, short-term disability plans registered with the Premium Reduction Program may have an elimination period before the payment of benefits.
Employers can provide supplemental payments to increase employees’ revenue while they’re receiving EI benefits. Supplemental payments aren’t deducted from employees’ EI benefits when certain requirements are met.
The two types of supplemental payments employers can provide are:
EI sickness benefits are designed to provide employees with financial assistance if they can’t work for medical reasons.
Employees can receive 55% of their earnings up to a maximum of $650 a week.
Employees with claims that began before December 18, 2022 are entitled to up to 15 weeks, while those who submitted claims on or after December 18, 2022 are entitled to up to 26 weeks.
To be eligible for sickness benefits, employees must get a medical certificate showing that they’re unable to work for medical reasons and for approximately how long. Medical reasons include illness, injury, quarantine or any medical condition that prevents them from working.
Paid sick leave (medical leave with pay) is a paid job-protected leave under Part III of the Canada Labour Code that provides federally regulated private sector employees with up to 10 days of leave per year. That said, paid sick leave is not mandated in all jurisdictions and employers should check with their local province for specific guidance.
Get expert advice on Employment Insurance and other federal legislation with Peninsula. Our HR experts can assist you with company policies, and with any other HR, health & safety or employment matters that arise. To learn more about how our services can benefit your business, call an expert today at 1 (833) 247-3652.
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