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Employment Insurance Act (S.C. 1996, c. 23)

Act current to 2019-08-15 and last amended on 2019-06-21. Previous Versions

Maximum Yearly Insurable Earnings

Marginal note:Maximum yearly insurable earnings

  •  (1) For the purposes of subsection 14(1.1), section 17, subsection 82(2) and sections 95 and 145, the maximum yearly insurable earnings is $39,000 until the amount calculated in accordance with subsection (2) for a year, before rounding down under subsection (4), exceeds $39,000, in which case the maximum yearly insurable earnings for that year is that amount, rounded down under subsection (4).

  • Marginal note:Calculation of amount

    (2) The amount referred to in subsection (1) is the amount equal to 52 times the product obtained by multiplying

    • (a) the average for the 12-month period ending on April 30 in the preceding year of the Average Weekly Earnings for each month in that period

    by

    • (b) 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.

  • Marginal note:Subsequent years

    (3) For years subsequent to the year in which the maximum yearly insurable earnings exceeds $39,000, before rounding down under subsection (4), the maximum yearly insurable earnings is the maximum yearly insurable earnings for the preceding year, before rounding down under that subsection, 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.

  • Marginal note:Rounding down

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

  • Marginal note:Average Weekly Earnings

    (5) The Average Weekly Earnings for a month is the average weekly earnings of the Industrial Aggregate in Canada for the month as published by Statistics Canada under the authority of the Statistics Act.

  • 1996, c. 23, s. 4
  • 2001, c. 5, s. 3
  • 2012, c. 19, s. 603, c. 31, s. 433
  • 2013, c. 40, s. 125

Insurable Employment

Marginal note:Types of insurable employment

  •  (1) Subject to subsection (2), insurable employment is

    • (a) employment in Canada by one or more employers, under any express or implied contract of service or apprenticeship, written or oral, whether the earnings of the employed person are received from the employer or some other person and whether the earnings are calculated by time or by the piece, or partly by time and partly by the piece, or otherwise;

    • (b) employment in Canada as described in paragraph (a) by Her Majesty in right of Canada;

    • (c) service in the Canadian Forces or in a police force;

    • (d) employment included by regulations made under subsection (4) or (5); and

    • (e) employment in Canada of an individual as the sponsor or co-ordinator of an employment benefits project.

  • Marginal note:Excluded employment

    (2) Insurable employment does not include

    • (a) employment of a casual nature other than for the purpose of the employer’s trade or business;

    • (b) the employment of a person by a corporation if the person controls more than 40% of the voting shares of the corporation;

    • (c) employment in Canada by Her Majesty in right of a province;

    • (d) employment in Canada by the government of a country other than Canada or of any political subdivision of the other country;

    • (e) employment in Canada by an international organization;

    • (f) employment in Canada under an exchange program if the employment is not remunerated by an employer that is resident in Canada;

    • (g) employment that constitutes an exchange of work or services;

    • (h) employment excluded by regulations made under subsection (6); and

    • (i) employment if the employer and employee are not dealing with each other at arm’s length.

  • Marginal note:Arm’s length dealing

    (3) For the purposes of paragraph (2)(i),

    • (a) the question of whether persons are not dealing with each other at arm’s length shall be determined in accordance with the Income Tax Act; and

    • (b) if the employer is, within the meaning of that Act, related to the employee, they are deemed to deal with each other at arm’s length if the Minister of National Revenue is satisfied that, having regard to all the circumstances of the employment, including the remuneration paid, the terms and conditions, the duration and the nature and importance of the work performed, it is reasonable to conclude that they would have entered into a substantially similar contract of employment if they had been dealing with each other at arm’s length.

  • Marginal note:Regulations to include employment

    (4) The Commission may, with the approval of the Governor in Council, make regulations for including in insurable employment

    • (a) employment outside Canada or partly outside Canada that would be insurable employment if it were in Canada;

    • (b) the entire employment of a person who is engaged by one employer partly in insurable employment and partly in other employment;

    • (c) employment that is not employment under a contract of service if it appears to the Commission that the terms and conditions of service of, and the nature of the work performed by, persons employed in that employment are similar to the terms and conditions of service of, and the nature of the work performed by, persons employed under a contract of service;

    • (d) employment in Canada by Her Majesty in right of a province if the government of the province waives exclusion and agrees to insure all its employees engaged in that employment;

    • (e) employment in Canada by the government of a country other than Canada or of any political subdivision of the other country if the employing government consents;

    • (f) employment in Canada by an international organization if the organization consents; and

    • (g) the tenure of an office as defined in subsection 2(1) of the Canada Pension Plan.

  • Marginal note:Regulations to include persons in business

    (5) The Commission may, with the approval of the Governor in Council and subject to affirmative resolution of Parliament, make regulations for including in insurable employment the business activities of a person who is engaged in a business, as defined in subsection 248(1) of the Income Tax Act.

  • Marginal note:Regulations to exclude employment

    (6) The Commission may, with the approval of the Governor in Council, make regulations for excluding from insurable employment

    • (a) any employment if it appears to the Commission that because of the laws of a country other than Canada a duplication of contributions or benefits will result;

    • (b) the entire employment of a person who is engaged by one employer partly in insurable employment and partly in other employment;

    • (c) any employment if it appears to the Commission that the nature of the work performed by persons employed in that employment is similar to the nature of the work performed by persons employed in employment that is not insurable employment;

    • (d) the employment of a member of a religious order who has taken a vow of poverty and whose remuneration is paid directly or by the member to the order;

    • (e) any employment in which persons are employed hardly at all or for nominal remuneration; and

    • (f) any employment provided under regulations made under section 24 or under employment benefits.

  • Marginal note:Defining certain expressions

    (7) The Commission may, with the approval of the Governor in Council, make regulations defining, for the purposes of this section, the expressions casual nature, government, in relation to a government of a country other than Canada or of a political subdivision of the other country, and international organization.

PART IUnemployment Benefits

Interpretation

Marginal note:Definitions

  •  (1) In this Part,

    disentitled

    disentitled means not entitled under section 13, 18, 21, 31, 32, 33, 36, 37, 49 or 50 or under the regulations; (inadmissible)

    disqualified

    disqualified means disqualified under section 27 or 30; (exclu du bénéfice des prestations)

    initial claim for benefits

    initial claim for benefits means a claim made for the purpose of establishing a claimant’s benefit period; (demande initiale de prestations)

    major attachment claimant

    major attachment claimant means a claimant who qualifies to receive benefits and has 600 or more hours of insurable employment in their qualifying period; (prestataire de la première catégorie)

    minor attachment claimant

    minor attachment claimant means a claimant who qualifies to receive benefits and has fewer than 600 hours of insurable employment in their qualifying period; (prestataire de la deuxième catégorie)

    qualifying period

    qualifying period means the period described in section 8; (période de référence)

    waiting period

    waiting period means the one week of the benefit period described in section 13. (délai de carence)

  • Marginal note:Rounding off percentages or fractions

    (2) A reference in this Part to an amount equal to a percentage or fraction of earnings or benefits in a period shall be rounded to the nearest multiple of one dollar or, if the amount is equidistant from two multiples of one dollar, to the higher multiple.

  • Marginal note:Hours of insurable employment

    (3) For the purposes of this Part, the number of hours of insurable employment that a claimant has in any period shall be established as provided under section 55, subject to any regulations made under paragraph 54(z.1) allocating the hours to the claimant’s qualifying period.

  • Marginal note:Employment not suitable

    (4) For the purposes of paragraphs 18(1)(a) and 27(1)(a) to (c) and subsection 50(8), employment is not suitable employment for a claimant if

    • (a) it arises in consequence of a work stoppage attributable to a labour dispute;

    • (b) it is in the claimant’s usual occupation and is either at a lower rate of earnings or on conditions less favourable than those observed by agreement between employers and employees or, in the absence of any such agreement, than those recognized by good employers; or

    • (c) it is not in the claimant’s usual occupation and is either at a lower rate of earnings or on conditions less favourable than those that the claimant might reasonably expect to obtain, having regard to the conditions that the claimant usually obtained in their usual occupation, or would have obtained if they had continued to be so employed.

  • Marginal note:Reasonable interval

    (5) After a lapse of a reasonable interval from the date on which an insured person becomes unemployed, paragraph (4)(c) does not apply to the employment described in that paragraph if it is employment at a rate of earnings not lower and on conditions not less favourable than those observed by agreement between employers and employees or, in the absence of any such agreement, than those recognized by good employers.

  • 1996, c. 23, s. 6
  • 2000, c. 14, s. 2
  • 2016, c. 7, s. 208, c. 12, s. 101
 
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