Employment Insurance Regulations - Amendments

Description

The changes in the attached schedule are basically clarifications and fine-tuning of measures that already exist in the Employment Insurance Regulations (EI). They deal principally with clarifications on the new hourly system of insurability and entitlement.

Clarifications on how to apply the new hourly system of insurability are seen in the changes or additions in sections 9.1, 10, 10.1 and 10.2. The changes and additions to 22, 22.1, 23 and 24 deal with clarifying the periods of time to which insurable earnings must be attached so that a claimant's weekly benefit rate can be calculated.

Changes were made to section 6 in order to restore the long-standing practice of accepting premiums from union officials who hold elective office.

Section 12 is amended to clarify that a week will be included in a claimant's rate calculation period used to calculate the person's weekly benefit rate if there are insurable earnings in the week-it will not be ignored-even if the prescribed conditions (e.g. a week of EI benefits or workers' compensation payments) also exist in it.

Section 24.1 sets up a limit for the amount of separation payments (principally vacation pay and wages in lieu of notice) that may be insured and be counted towards a claimant's weekly benefit rate. To prevent a small percentage of affected claimants (about 1.3%) with large vacation pay credits from having inflated benefit rates, the amount of insured earnings counted will be capped at the equivalent a 65% benefit rate.

The changes in sections 15, 16, 30, 31, 35 and 36 are minor fine-tuning to the language or application of the self-employment and earnings regulations and sections 55.1 and 89.1 clarify the authority of the department to control the entry into Canada of applications for benefits and SIN cards.

The transitional provisions in sections 94.1 and 94.3 clarify how weeks of insured employment and insurable earnings from 1996 will be integrated into claims established under the new hourly system of entitlement.

Alternatives

No other alternative was considered because these Regulations are just clarifications and fine-tuning of the consequential Employment Insurance Regulations that came into force on June 30, 1996.

These Regulations are necessary for implementation of the EI Act and EI Regulations. The regulations have been drafted to result in more equitable treatment for claimants and employers and more efficient administration of the program.

Benefits and Costs

These provisions are generally just clarifications of existing provisions in the Employment Insurance Regulations, they do not have independent impact.

The amendment on the insurability of separation payments found in section 24.1 is cost neutral. It insures consistency of tax and insurability treatment of separation payments.

By 2001/02, the implementation of the provisions of the EI Act and regulations will result in a reduction of insurance benefit costs of about $2 billion per year: $800 million of these savings will be reinvested into EI employment benefits.

Consultation

Bill C-12, which gives rise to these clarifications on the consequential provisions, was the subject of consultation with various government departments, Members of Parliament, interest groups, and was debated in the House of Commons and the Senate.

Compliance and Enforcement

Existing compliance mechanisms contained in the Revenue Canada and Canada Employment Insurance Commission's control procedures will ensure that these provisions are properly implemented.

Contact

Glenn Ramsay
Senior Policy Advisor
Policy and Legislation Development, Insurance
Human Resources Development Canada
140 Promenade du Portage
11th Floor
Ottawa, Ontario
K1A 0J9
Tel.: (819) 994-6044
FAX: (819) 953-9381