Employment Insurance Regulations - Part I - Unemployment Benefits

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37. (1)  Subject to the other provisions of this section, payments received by a claimant under a supplemental unemployment benefit plan are not earnings for the purposes of section 19, subsection 21(3) or section 45 or 46 of the Act.

 (2)  For the purpose of subsection (1), a supplemental unemployment benefit plan is a plan that

(a) identifies the group or groups of employees covered by the plan;

(b) covers any period of unemployment by reason of a temporary stoppage of work, training, illness, injury, quarantine or any combination of such reasons;

(c) requires employees to apply for and be in receipt of benefits in order to receive payments under the plan but may provide for payments to an employee who is not in receipt of benefits for the reason that the employee

(i) is serving the waiting period,

(ii) has insufficient hours of insurable employment to qualify for benefits, or

(iii) has received all of the benefits to which the employee is entitled;

(d) requires that the combined weekly payments received from the plan and the portion of the weekly benefit rate from that employment do not exceed 95 per cent of the employee's normal weekly earnings from that employment;

(e) requires that payments under the plan be financed by the employer and that the employer keep separate accounts for those payments;

(f) requires that, on termination of the plan, all remaining assets revert to the employer or be used for payments under the plan or for administrative costs of the plan;

(g) requires that the plan be submitted to the Commission prior to its effective date and that written notice of any change to the plan be given to the Commission within 30 days after the effective date of the change;

(h) provides that the employees have no vested right to payments under the plan, except to payments during a period of unemployment specified in the plan; and

(i) provides that payments in respect of guaranteed annual remuneration or in respect of deferred remuneration or severance pay benefits are not reduced or increased by payments received under the plan.

SOR/2002-154, s.6; SOR/2002-274, s.1

38. The following portion of any payments that are paid because of pregnancy, for the care of a child or children referred to in subsection 23(1) of the Act, or for the care or support of a family member referred to in subsection 23.1(2) of the Act, or because of any combination of those reasons is excluded as earnings for the purposes of section 35, namely, the portion that

(a) when combined with the portion of the claimant's weekly benefit rate from that employment, does not exceed that claimant's normal weekly earnings from that employment; and

(b) does not reduce the claimant's accumulated sick leave or vacation leave credits, severance pay or any other accumulated credits from that claimant's employment.

SOR/2002-274, s.2 and s. 3 ;SOR/2003-393, s. 6; SOR/2003-393, s. 7.