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Labour Adjustment Benefits Act (R.S.C., 1985, c. L-1)

Act current to 2022-07-13 and last amended on 2013-12-12. Previous Versions

Labour Adjustment Benefits Act

R.S.C., 1985, c. L-1

An Act to provide for the payment of benefits to laid-off employees

Short Title

Marginal note:Short title

 This Act may be cited as the Labour Adjustment Benefits Act.

  • 1980-81-82-83, c. 89, s. 1

Interpretation

Marginal note:Definitions

  •  (1) In this Act,

    average weekly insurable earnings

    average weekly insurable earnings, in respect of an employee, means the weekly average of the employee’s insurable earnings, as determined under the Employment Insurance Act; (rémunération hebdomadaire assurable moyenne)

    Board

    Board means the Labour Adjustment Review Board established by section 6; (Office)

    board of referees

    board of referees[Repealed, 2012, c. 19, s. 273]

    Canadian establishment

    Canadian establishment means any establishment in Canada engaged in the production of goods or the provision of services; (établissement canadien)

    Commission

    Commission means the Canada Employment Insurance Commission; (Commission)

    designated industry

    designated industry means an industry designated pursuant to section 3; (secteur d’activités désigné)

    effective date of lay-off

    effective date of lay-off, in respect of an employee, means the date the employee was laid off as determined by the Board pursuant to subsection 11(3); (date de mise à pied)

    employee

    employee means any individual who has been employed at a Canadian establishment; (employé)

    industrial restructuring

    industrial restructuring includes technological change; (restructuration industrielle)

    labour adjustment benefits

    labour adjustment benefits means the benefits payable under this Act; (prestations d’adaptation)

    lay-off

    lay-off means the separation, for an indefinite period, of an employee from employment at a Canadian establishment solely as a result of a reduction in the number of employees at that establishment; (mise à pied)

    Minister

    Minister means the Minister of Employment and Social Development; (ministre)

    qualified employee

    qualified employee means an employee who has been determined by the Commission pursuant to this Act to be qualified to receive labour adjustment benefits; (employé admissible)

    Social Security Tribunal

    Social Security Tribunal means the Social Security Tribunal established under section 44 of the Department of Employment and Social Development Act; (Tribunal de la sécurité sociale)

    week

    week means a period of seven consecutive days commencing on Sunday; (semaine)

    year

    year means a calendar year. (année)

  • Marginal note:Presumption

    (2) For the purposes of any provision of this Act in which reference is made to a person’s attaining sixty-five years of age, a person is deemed to have attained that age at the beginning of the calendar month following the calendar month in which he actually attains that age.

  • R.S., 1985, c. L-1, s. 2
  • 1996, c. 11, ss. 95, 99, c. 23, s. 177
  • 2005, c. 34, s. 80
  • 2012, c. 19, s. 273
  • 2013, c. 40, ss. 236, 238

Designation of Industries

Marginal note:Designation of industries

  •  (1) For the purposes of this Act, the Governor in Council may, by order, designate any industry either generally or with respect to any region of Canada.

  • Marginal note:Criteria for general designation

    (2) An industry may be designated generally pursuant to subsection (1) if the Governor in Council is satisfied that

    • (a) the industry in Canada generally is undergoing significant economic adjustment of a non-cyclical nature by reason of import competition or by reason of industrial restructuring implemented pursuant to a policy or program of the Government of Canada to encourage such restructuring; and

    • (b) the economic adjustment referred to in paragraph (a) is resulting in a significant loss of employment in the industry in Canada generally.

  • Marginal note:Criteria for regional designation

    (3) An industry may be designated with respect to any region of Canada pursuant to subsection (1) if the Governor in Council is satisfied that

    • (a) the industry in that region is undergoing significant economic adjustment of a non-cyclical nature; and

    • (b) the economic adjustment referred to in paragraph (a) is resulting in a severe economic disruption in that region and in a significant loss of employment in the industry in that region.

  • 1980-81-82-83, c. 89, s. 3

Marginal note:Term of general designation

  •  (1) An order made under subsection 3(1) that designates an industry generally is in force for such period, not exceeding three years from the date the order is made, as is specified in the order unless, before the expiration of the period so specified, the Governor in Council makes a continuation order continuing the order in force for such period, not exceeding three years, as is specified in the continuation order.

  • Marginal note:No further extension

    (2) Not more than one continuation order may be made under subsection (1) in respect of any one order made under subsection 3(1).

  • Marginal note:Term of regional designation

    (3) An order made under subsection 3(1) that designates an industry with respect to a region in Canada is in force for one year from the date the order is made unless, before the expiration of that one year, the Governor in Council makes a continuation order continuing the order in force for such period, not exceeding six months, as is specified in the continuation order.

  • Marginal note:Further extension

    (4) Where the Governor in Council has made a continuation order under subsection (3) continuing an order in force, he may, before the expiration of the period for which the order is so continued, make one further continuation order continuing the order in force for such further period, not exceeding six months, as is specified in the further continuation order.

  • Marginal note:Entitlement continued

    (5) The revocation or expiration of an order made under this section or section 3 does not affect the entitlement, after the revocation or expiration, of any person laid off while the order was in force to make an application under section 11 or 13 in relation to the order or to receive labour adjustment benefits by virtue of the order.

  • 1980-81-82-83, c. 89, s. 3, c. 169, s. 2

Marginal note:Retroactive application

  •  (1) Subject to subsection (2), the Governor in Council may, in any order made under section 3 or 4, declare

    • (a) that the designation of the industry in the order is retroactive in effect and applies as of such day, before the date of the order, as is specified in the order; and

    • (b) that this Act applies in respect of lay-offs from a Canadian establishment in the industry designated in the order occurring on or after the day specified pursuant to paragraph (a).

  • Marginal note:Limitation

    (2) The Governor in Council may not specify pursuant to paragraph (1)(a) a day that is earlier than May 1, 1978.

  • 1980-81-82-83, c. 89, s. 4, c. 169, s. 3(F)

Labour Adjustment Review Board

Marginal note:Board established

  •  (1) There is hereby established a board, to be known as the Labour Adjustment Review Board, consisting of not more than five members.

  • Marginal note:Appointment and tenure of members

    (2) Each member of the Board shall be appointed by the Minister to hold office during pleasure.

  • Marginal note:Representatives

    (3) One member of the Board shall be appointed after consultation with such organizations representative of employees as the Minister deems appropriate and shall be a representative of employees and another member of the Board shall be appointed after consultation with such organizations representative of employers as the Minister deems appropriate and shall be a representative of employers.

  • Marginal note:Temporary substitute members

    (4) If any member of the Board is absent or unable to act, the Minister may appoint a person to act as a member for the time being, but no person so appointed has authority to act as a member for a period exceeding ninety days without the approval of the Minister.

  • Marginal note:Idem

    (5) A member appointed pursuant to subsection (4) holds office during pleasure and may exercise all the powers and carry out all the duties and functions of a member of the Board.

  • Marginal note:Remuneration and expenses

    (6) The members of the Board who are not employed in the federal public administration are entitled to be paid for their services in connection with the work of the Board such remuneration and expenses as are authorized by the Governor in Council.

  • R.S., 1985, c. L-1, s. 6
  • 2003, c. 22, s. 224(E)

Marginal note:Chairman and Vice-Chairman

  •  (1) The Minister shall designate one member of the Board to be Chairman of the Board and another member to be Vice-Chairman of the Board.

  • Marginal note:Absence or incapacity of Chairman

    (2) If the Chairman of the Board is absent or unable to act or if that office is vacant, the Vice-Chairman of the Board may exercise all the powers and carry out all the duties and functions of the Chairman.

  • Marginal note:Chief executive officer

    (3) The Chairman of the Board is the chief executive officer of the Board and has supervision over and direction of the work and staff of the Board and shall preside at meetings of the Board.

  • 1980-81-82-83, c. 89, s. 6

Marginal note:Head Office

  •  (1) The head office of the Board shall be at such place in Canada as the Governor in Council may, by order, designate.

  • Marginal note:Sittings

    (2) The Board may sit at such time and at such place in Canada as it considers necessary or desirable for the proper conduct of its business.

  • Marginal note:Rules

    (3) The Board may make rules respecting

    • (a) the sittings of the Board;

    • (b) the manner of dealing with matters and business before the Board; and

    • (c) the exercise of the powers and performance of the duties and functions of the Board generally.

  • Marginal note:Staff

    (4) The Minister may, on request of the Board, provide the Board with such professional, technical, secretarial, clerical and other assistance as is necessary for the proper conduct of the business of the Board.

  • 1980-81-82-83, c. 89, s. 7

Marginal note:Powers and duties

 The Board shall exercise such powers and perform such duties and functions as are conferred or imposed on it by, or as may be incidental to the attainment of the objects of, this Act.

  • 1980-81-82-83, c. 89, s. 8

Entitlement to Labour Adjustment Benefits

Marginal note:Entitlement to benefits

 Labour adjustment benefits are payable as provided in this Act to any qualified employee.

  • 1980-81-82-83, c. 89, s. 9

Certification by Board

Marginal note:Application for certification

  •  (1) Any employee who has been laid off may apply, directly or through an employer, trade union or any person, to the Board for certification that he is eligible to apply to the Commission for labour adjustment benefits.

  • Marginal note:Form and content of application

    (2) An application under subsection (1) shall be submitted in such form and manner as the Board may direct and shall set out the name of the employee in respect of whom the application is being made and such other information as the Board may require.

  • Marginal note:Investigation

    (3) On receipt of an application under subsection (1), the Board shall carry out such investigation as it considers necessary for the purpose of determining the eligibility of the employee named in the application to apply to the Commission for labour adjustment benefits and for that purpose the Board shall determine the date the employee was laid off.

  • Marginal note:Decision on application

    (4) On completion of its investigation under subsection (3), the Board shall determine whether or not the employee is eligible to apply to the Commission for labour adjustment benefits and shall notify the applicant in writing of its decision.

  • Marginal note:Certification

    (5) Where the Board determines pursuant to subsection (4) that an employee is eligible to apply to the Commission for labour adjustment benefits, it shall so certify in writing to the Commission.

  • Marginal note:Content of certification

    (6) Certification under subsection (5) shall be submitted in such form and manner as the Commission may direct and shall set out the name of the employee certified, his effective date of lay-off and such other information respecting the lay-off of the employee as the Commission may require.

  • 1980-81-82-83, c. 89, s. 10
  • 1984, c. 40, s. 79(E)

Marginal note:Requirements for certification

 The Board may certify that an employee named in an application under section 11 is eligible to apply to the Commission for labour adjustment benefits if

  • (a) he was laid off;

  • (b) the Canadian establishment from which he was laid off was, at the time of his lay-off, part of a designated industry;

  • (c) the number of employees at the Canadian establishment referred to in paragraph (b) was reduced as a result of lay-offs, in any twelve month period including the employee’s effective date of lay-off, by at least ten per cent or fifty employees, whichever is the lesser; and

  • (d) his lay-off resulted from the economic adjustment referred to in subsection 3(2) or (3), as the case may be.

  • 1980-81-82-83, c. 89, s. 11, c. 169, s. 4
  • 1984, c. 40, s. 79(E)

Application to Commission

Marginal note:Eligible applicants

  •  (1) An employee who has been certified under section 11 may apply to the Commission for labour adjustment benefits.

  • Marginal note:Form and content of application

    (2) An application under subsection (1) shall be submitted in such form and manner as the Commission may direct and shall set out such information as the Commission may require.

  • Marginal note:Attendance

    (3) For the purposes of this section, the Commission may require an applicant to attend at a suitable time and place in order to make an application in person or to provide information required under subsection (2).

  • Marginal note:Investigation

    (4) On receipt of an application under subsection (1), the Commission shall carry out such investigation as it considers necessary for the purpose of determining whether or not the applicant is qualified to receive labour adjustment benefits.

  • Marginal note:Decision on application

    (5) Subject to subsection (6), on completion of its investigation under subsection (4), the Commission shall determine whether or not the applicant is qualified to receive labour adjustment benefits and shall notify him in writing of its decision.

  • Marginal note:Reference to Social Security Tribunal

    (6) The Commission may at any time within 14 days after receiving an application under subsection (1) refer the application or a question arising from it to the General Division of the Social Security Tribunal for a decision on it.

  • Marginal note:Proceedings before Social Security Tribunal

    (7) If an application or question is referred to the General Division of the Social Security Tribunal under subsection (6), the Tribunal must conduct its proceedings in respect of that application or question in accordance with the procedure for appeals under the Department of Employment and Social Development Act.

  • Marginal note:Failure to comply with requirements

    (8) Notwithstanding any other provision of this Act, an applicant who fails to comply with a requirement under subsection (2) or (3) that has not been waived under subsection (9) is not qualified to receive labour adjustment benefits as long as such failure to comply continues.

  • Marginal note:Waiver or variation of requirement

    (9) The Commission may waive or vary any requirement under subsection (2) or (3) if in its opinion the circumstances warrant such waiver or variation for the benefit of the applicant in a particular case or class or group of cases.

  • R.S., 1985, c. L-1, s. 13
  • 1996, c. 23, s. 187
  • 2012, c. 19, s. 274
  • 2013, c. 40, s. 236
 
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