Digest of Benefit Entitlement Principles - Chapter 1
CHAPTER 1
BASIC CONCEPTS
1.8.0 WAITING PERIOD- 1.8.1 Application
1.8.2 Commencement of Waiting Period
1.8.3 Effect of Waiting Period
1.8.4 Days of Disentitlement
1.8.5 Earnings in Waiting Period
The waiting period is a two-week period for which no benefit is paid to the claimant1. This provision can be likened to the deductible clause in fire and automobile insurance policies under which the insured person is expected to share a part of the damages or loss.
A claimant is not entitled to be paid benefit in a benefit period until a two-week waiting period has been served1.
There are exceptions to the above rule. The waiting period is sometimes waived under certain circumstances when a claimant is paid sick leave pay from an employer following the last day worked2. In the case where a claimant becomes employed in work sharing employment, the waiting period, or any unserved portion, is deferred3.
Another exception is applicable to parental benefits only for births and placements for adoption occurring after December 31, 2000
Waiving the waiting period should not be confused with deferring the waiting period. In the event that the waiting period was waived for the first parent, the second parent would be required to serve the waiting period as a waiting period was not previously served in respect of the same child. The only exception to this would be in a situation where the second parent also received sick leave pay from his employer after ceasing work, thus meeting the conditions to waive the waiting period.
In situations when the claimant works for more than one employer, if he was paid sick leave pay after ceasing work from one of these employers and had an interruption of earnings5 for the same employer, the conditions have been met to waive the waiting period6.
A regulation7 made on January 1, 2006, in the context of the implementation of the Quebec Parental Insurance Plan8 authorizes waiving the waiting period where benefits have been paid under a provincial plan such as the QPIP.
The legislation provides a further exception that only one waiting period must be served when a claimant is providing care or support to a family member with a serious medical condition and a significant risk of death within 26 weeks, commonly referred to as compassionate care benefits. Where these benefits are shared by more than one claimant, the other claimant(s) providing care or support to the same family member within the same 26 week window can have the waiting period deferred when another claimant has served or is serving the waiting period in respect of that claim9.
[September 2006 ] [July 2003]
- EIA 13; Jurisprudence Index/basic concepts/waiting period/;
- EIR 40(6);
- EIR 46;
- EIA 23(5); see 13.1.3 "Waiting period";
- EIR 40(6);
- Refer to EIR 76.22;
- Refer to 3.1 of the Appendix to Chapter 12;
- EIA 23.1(7) .
1.8.2 Commencement of Waiting Period
The waiting period almost always occurs at the very beginning of the benefit period. It must begin with the first week for which benefits would otherwise be payable to the claimant1. As a two-week period, it covers two consecutive weeks ending on the Saturday of the following week.
Even in the absence of a waiting period, there may be cases where benefits would not otherwise be payable for the first week in a benefit period, such as when a disentitlement is imposed for the first full week. The commencement of the waiting period will be delayed for as long as the disentitlement exists2 until the following week or if necessary until the first week for which benefits would be payable, had there not been a waiting period.
Similarly, there are cases where earnings allocated to the first weeks in a benefit period are greater than the benefit rate; here again the commencement of the waiting period is in effect deferred. This occurs when the amount allocated to a relevant week is equal to or greater than 125% of the benefit rate3.
In the case of sickness, maternity, parental and/or compassionate care benefits, the rules are somewhat different. Sickness, maternity, parental and compassionate care benefits will be discussed in separate chapters.
It should be noted that a disqualification has no affect on the waiting period; the disqualification can be served only after the waiting period is over4.
________________________- EIA 13;
- Jurisprudence Index/basic concepts/waiting period/;
- EIA 19(1); EIA 19(2); see 1.9.4, "Decrease in the Benefit Rate–Intensity Rule"; EIR 35;
- EIA 28(1); Jurisprudence Index/basic concepts/waiting period/.
1.8.3 Effect of Waiting Period
Monies considered as earnings and allocated, as such to either week of the waiting period have no effect on the waiting period itself but rather on the weeks following it1. This applies also for any days of disentitlement that fall within these two weeks2, or a combination of the two.
Specifically, the effect is on the first three weeks for which benefit is otherwise payable following the waiting period. Note that these three weeks need not be consecutive; nor do they have to immediately follow the waiting period. Once these three weeks have elapsed, there is no further effect from the waiting period on the payment of benefits.
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A deduction amounting to one-fifth of the benefit rate will be made for each working day of disentitlement that falls within the two-week waiting period1. This deduction is subject to the rules discussed under the preceding heading "Effect of Waiting Period" and to the definition of a working day2.
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- EIA 20(1);
- see 1.9.10, "Unpaid Wages."
1.8.5 Earnings in Waiting Period
Earnings allocated to any one week of the waiting period result in a dollar for dollar deduction1 to a maximum allocation equal to the rate of benefit2. Therefore, the maximum deduction for the two-week waiting period is twice the weekly rate of benefit. Further, this deduction is subject to the rules discussed under the heading "Effect of Waiting Period".
Earnings and days of disentitlement may have to be deducted at the same time. Here again, the maximum deduction for any one week of the waiting period must not exceed the benefit rate.
As an exception for a claimant employed under a work sharing agreement, the effect of the waiting period is not immediate where the deduction to be made arises out of earnings received; rather, the applicable deduction is deferred until the end of the agreement3.
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