Digest of Benefit Entitlement Principles - Chapter 1

CHAPTER 1 BASIC CONCEPTS

1.9.0 PAYMENT OF BENEFIT

1.9.1     Continuing Claim Required
1.9.2     Rate Calculation Period (RCP)
1.9.3     Weekly Rate of Benefit
1.9.4     Decrease in the Benefit Rate—Intensity Rule
1.9.5     Increase in the Benefit Rate
1.9.6     Benefit Paid Defined
1.9.7     Repayment of Benefits
1.9.8     Allowable Earnings
1.9.9     Days of Disentitlement
1.9.10   Unpaid Wages
1.9.11   Claim for More than One Type of Benefits

1.9.0 PAYMENT OF BENEFIT

Once the benefit period has been established the waiting period served and the claimant fulfils the conditions of entitlement, a claimant generally receives a benefit payment every two weeks, i.e. after a claim is made for the two-week period in question.

1.9.1 Continuing Claim Required

Benefit will only be made to a claimant for any week in a benefit period when a request is made for their payment¹, that is, by making a claim². This must be done by a form that is approved for this purpose³, commonly called, "continuing claim⁴".

The form in use, a report card or claimant's report covers a period of two weeks; occasionally, it may cover only one week. It must be returned to the pay centre at the end of the period covered. There are two ways of filing this report when it is due, either by returning it to the Service Canada Centre or in specific situation by using a touch tone phone and keying it in. A delay results in disentitlement⁵ unless good cause is shown for the delay⁶ and the claim can be antedated⁷.

In the cases of maternity, parental and compassionate care benefits, the claimant may opt out of completing claimant's report altogether. However, the claimant is still responsible for reporting any situations to the Service Canada Centre that may affect entitlement to these benefits; for instance, receipt of vacation pay.

On very particular occasions, a continuing claim may be filed before the end of the period it covers and an advance payment made. This may happen at Christmas time or where unemployment is the result of a disaster at the claimant's place of work⁸.

It is to be noted that a claim is said to be renewed when, during a benefit period, a claimant applies after not having made a claim for four or more consecutive weeks⁹. A renewal claim must be made no later than in the week that follows the week for which benefits are being claimed¹⁰. Just as for a continuing claim, a renewal claim may be antedated¹¹.

[September 2006]

B. Harbour (A-541-85, CUB 10633);
EIA 49(1);
EIA 50(3);
see 1.1.6, "Payment of Benefits";
EIA 50(1); EIR 26;
see Chapter 3, "Antedate";
EIA 10(4);
EIR 28;
B. Harbour, Jurisprudence Index/basic concepts/claim required/;
EIR 26(2);
EIA 10(5).

1.9.2 Rate Calculation Period (RCP)

The EI Act has a provision to calculate the benefit rate by using all insurable earnings within a fixed period called the Rate Calculation Period (RCP)¹.

The RCP is the period of not more than 26 consecutive weeks in the claimant's qualifying period ending with the later of:

the week before benefit period commencement (BPC), if the BPC is the Sunday of the week of the last interruption of earnings (IOE) or
the week of the last IOE if the BPC is the Sunday of a week this is after the week of the last IOE and
the week before the BPC if the claimant has an insurable employment at the beginning of that week.

Any Labour Force Attachment week defined by regulation² is skipped when establishing the RCP unless there are insurable earnings in that week. This has the effect of extending the RCP for every prescribed week without insurable earnings that falls within the RCP.

In the context of the implementation of the Quebec Parental Insurance Plan on January 1, 2006, a new principle has been established to guarantee equity in the processing of claims for Employment Insurance benefits that are filed throughout Canada. This principle of equivalence³ extends to benefits paid under a provincial plan a recognition that is similar to maternity or parental benefits paid under the EI program.

According to a section added⁴ to the regulation dealing with prescribed hours and weeks,⁵ it follows that any week for which a claimant has no insurable earnings and has received provincial benefits – such as QPIP benefits – is considered a prescribed week relating to employment in the labour force.

Accordingly, such provincial benefit weeks will not be taken into account in the rate calculation period⁶ consisting of a maximum of twenty-six consecutive weeks during the qualifying period.

[September 2006 ]

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EIA 14(4);
EIR 12(2).
EIR 76.12 (2);
EIR 12(2) (d);
EIA 14(4); refer to 3.4.1.3 of the Appendix to Chapter 12.

1.9.3 Weekly Rate of Benefit

The weekly rate of benefit is the maximum amount a claimant may receive for each week in the benefit period. The basic benefit rate is 55% of the average insured earnings up to a maximum of $413.00 per week¹. Depending on personal circumstances a benefit rate could be higher or lower than 55%², however, the maximum payment of $413.00 will not change.

The claimant's average weekly insurable earnings amount will be determined by using all insurable earnings in his or her Rate Calculation Period (RCP) and dividing this amount by a divisor³. This divisor is the larger of:

the number of weeks during the RCP in which the claimant had insurable employment; or
a number equivalent to the Variable Entrance Requirement (VER) plus 2 up to a maximum of 22.

That average weekly insurable earnings amount cannot exceed $750.00⁴. The benefit rate is 55% of that calculated average weekly insurable earnings amount.

The total amount of insurable earnings will be allocated in the RCP where the employment falls completely in the RCP. Where any period of employment falls partially outside the RCP, the total amount of insurable earnings, excluding those payable by reason of lay-off or separation from employment, will be allocated proportionately over the period of employment on the basis that the claimant earned the same amount of insurable earnings for each of the seven days of each week.

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1.9.4 Decrease in the Benefit Rate-Intensity Rule

The decrease in the benefit rate applies to weeks of regular benefits paid or payable effective June 30,1996 to September 30, 2000 only.

For benefit rate reduction prior to September 30, 2000, refer to the legislation and Digest principles as previously read.

1.9.5 Increase in the Benefit Rate

The benefit rate is increased if the claimant or the claimant's spouse is:

in receipt of the Child Tax Benefit (CTB) under the Income Tax Act on the Sunday of the week for which unemployment benefits are claimed; and
the family income is lower than $25,921.

This is called a Family Supplement¹.

No family supplement is payable where the family income exceeds the Child Tax Benefit Working Income threshold of $25,921 or once the unemployment weekly benefit rate plus the family supplement reaches the maximum weekly benefit rate of $413².

If claiming employment benefits for the same period only one of the spouses will be entitled to the family supplement. The choice of who receives the family supplement is the claimant's to make and will have to be made prior to the week of employment insurance benefits claimed for³.

The maximum family supplement to the EI benefit rate will be increased on a graduated scale not to exceed the prescribed percentages of the claimant's weekly insurable earnings in the rate calculation period⁴.

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1.9.6 Benefit Paid Defined

As previously discussed, there is a maximum number of weeks of benefit that can be paid in a benefit period¹. Any week in respect of which benefit in the amount of one dollar or more has been paid is deducted from this maximum number². Also to be deducted from this maximum are weeks for which no actual payment was made but for which benefits are deemed paid; the following is a list of such weeks:

benefit for a week was applied against a week of disqualification (i.e. weeks of definite disqualification according to Section 27)³;
benefit for a week was used to repay an overpayment⁴;
benefit for a week was applied against a penalty⁵;
benefit for a week was transferred to a government or municipal authority as a refund of assistance already provided⁶.

However, a week for which benefit has been paid or has been deemed to be paid must not be deducted from the number of weeks payable in a benefit period if, following reconsideration, the claimant was not entitled to any benefit for that week and an overpayment is established.

In the context of the implementation of the Quebec Parental Insurance Plan on January 1, 2006, a new principle has been established to guarantee equity in the processing of claims for Employment Insurance benefits that are filed throughout Canada. This principle of equivalence⁷ extends to benefits paid under a provincial plan a recognition that is similar to maternity or parental benefits paid under the EI program, applies to any future claim for EI benefits.

According to a provision⁸ made in this context, each week of provincial benefits such as QPIP benefits is considered as a week for which benefits are paid under the EI and is taken into consideration in calculating:

the overall maximum number of weeks of EI maternity or parental benefits to be paid per benefit period and the maximum number of weeks of EI benefits to be paid regarding a birth or an adoption⁹.

[September 2006]

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see 1.4.2, "Number of Weeks of Benefit";
Jurisprudence Index/basic concepts/benefits paid/defined/;
EIA 27; EIA 28(6);
EIA 42(1); EIA 42(2); EIA 47;
EIA 38(1); EIA 38(2);
EIA 42(3).
Refer to 3.4 of the Appendix to Chapter 12;
EIR 76.19 (1);
Refer to 3.4.3.1 of the Appendix to Chapter 12.

1.9.7 Repayment of Benefits

The repayment clause is applied when a person's net income as defined in the Income Tax Act exceeds 1.25 times the maximum yearly insured earnings.

For taxation year 2000 and onward,

the net income threshold is $48,750 and applies to regular and regular fishing benefits only;
the repayment level is set at 30%¹;
special benefits (sickness, maternity, parental and compassionate care) are exempt from the repayment provisions²;
a first time claimant is exempt from this provision.

A first time claimant is defined for these purposes to be an individual who has received less than 1 week of regular benefits in the 10 taxation years prior to the current taxation year³

regular benefits (including regular fishing) paid for weeks beginning prior to June 30, 1996 are not considered in applying this provision⁴.

When a claimant's net income exceeds the threshold of $48,750, the claimant is required to repay the Receiver General the lesser of⁵:

a) total regular benefits paid in taxation year; and

b) the amount by which the claimant's net income for the taxation year exceeds $48,750.

When an overpayment amount that was a result of fraud is repaid, those weeks of overpayment are still considered to be weeks paid for benefit repayment⁶.

EI benefits for work-sharing and employment measures⁷ are subject to repayment, however, no Part II financial assistance of any kind⁸ is included in the repayment provisions.

[September 2006]

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1.9.8 Allowable Earnings

Earnings allocated to a week following the waiting period are not deducted in full from the benefit to be paid for that week, but only that part which is in excess of 25% of the rate of benefit¹. It follows that no benefit is payable when the earnings for a week equal or exceed 125% of the benefit rate/new rate. Where the benefit rate is less than $200.00 an allowable amount of $50.00 applies. Any earnings over the $50.00 are deducted dollar for dollar.

The allowable earnings provision also applies to two types of special benefits; namely for weeks of parental benefits payable on or after December 31, 2000 for births or placement for adoption of a child which occurred after December 31, 2000 and for weeks of compassionate care benefits payable on or after January 4, 2004².

Sickness and maternity benefits are exceptions to these rules, and any earnings are deducted dollar for dollar³. In addition, any earnings while on parental benefits payable prior to December 31, 2000, with an actual date of confinement or arrival placement week for purposes of adoption prior to December 31, 2000 were deducted dollar-for dollar⁴.

The allowable earnings of 25% and earnings to be deducted are always rounded to the nearest dollar. A fraction that is less than one-half is disregarded, and a fraction equal to or greater than one-half is taken as a dollar⁵. For example, for a rate of $300 the allowable earnings are $75; earnings in the amount of $82.50 would result in a deduction of $8, reducing the benefits payable to $292.

A claimant residing in one of the 23 designated economic regions in Canada may benefit from the three-year Employment Insurance pilot project no. 8, which extends from December 11, 2005, to December 6, 2008. Under this pilot project, the claimant can earn the greater of $75 per week or 40% of the weekly benefit rate before a deduction is made from the benefit amount.⁶

A regulatory provision⁷ was made on January 1, 2006, in the context of the implementation of the Quebec Parental Insurance Program.⁸ It stipulates that the EI maternity or parental benefits that may be paid in respect of any week for which a person has received or is entitled to receive benefits from the provincial plan are reduced by an amount equal to those provincial benefits in addition to any other deduction provided for.⁹

Thus, an amount equivalent to whatever QPIP provincial benefits a person has received or is entitled to receive in a given week will be deducted in full from whatever EI maternity or parental benefits for which the person may be eligible for that week in certain situations.¹⁰

When a claimant is referred to a course or program of instruction or training by the Commission or an authority designated by the Commission, earnings or allowances received under employment benefits¹¹ are not deducted from unemployment benefits except in accordance with the EI Regulations¹².

When the claimant is attending a course or program of instruction to which there has been no referral the total of any allowances paid for attending that course are deducted¹³. However that Regulation excludes from deduction any allowances paid for dependant care, travel, commuting or living away from home or disability¹⁴.

There will be cases where the claimant attends a training course and is paid employment benefits because they did not have an interruption of earnings or qualify for unemployment benefits, or because they were disentitled from benefits. If this same claimant then subsequently qualifies for regular unemployment benefits for those same weeks, the total of those earnings or allowances paid as an employment benefit will be deducted¹⁵. For this regulations to apply all three conditions therein must be present

1) the claimant originally did not have an interruption of earnings or qualify for unemployment benefits,

2) was paid employment benefits for attending a course or program of instruction or training, and

3) subsequently became entitled to regular unemployment benefits for those same weeks.

Earnings arising from a job not related to the course or employment activity continue to be deducted from benefits¹⁶.

[September 2006]

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EIA 19(2);
EIA 19(2);
EIA 19(2)(a);
EIA 23(3);
EIA 6(2);
EIR 77.4:
EIR 76.16 and 76.17;
Refer to the Appendix to Chapter 12
i.e., any deduction provided for in 19, 22(5) and 23(3.5) of the EIA;
EIR 76.09(2); refer to 3.3.2 of the Appendix to Chapter 12;
EIA 19(4);
EIR 16(1);
EIR 16(2);
EIR 16(3); EIR 16(3)(b); EIR 16(3)(c);
EIR 19(4);
EIR 35 and EIR 36.

1.9.9 Days of Disentitlement

Each working day in a week for which benefit would be paid that is subject to a disentitlement will result in a deduction equivalent to one-fifth of the benefit rate¹.

Because the fraction one-fifth is used, a working day is considered to be one of five weekdays thereby excluding Sunday and Saturday. One regulatory provision is explicit on this for disentitlements resulting from non-availability²; thus, even holidays that fall on a weekday are considered to be working days.

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EIA 20(1);
EIR 32.

1.9.10 Unpaid Wages

When an employer is experiencing financial difficulties and is on the verge of bankruptcy or receivership, and the claimant has filed a complaint with the provincial labour authorities for delinquent payment of wages owing for work performed, the claimant is given credit for those unpaid wages and weeks of work for the purposes of establishing their claim for benefits¹.

In these situations, Canada Customs and Revenue Agency gives the claimant credit for the unpaid portion of earnings. However, termination monies and overtime owed to the claimant, but not paid by the employer, are not included in the determination of unpaid insurable earnings², this provision applies to unpaid wages only.

Unpaid wages that fall into the rate calculation period are considered when determining the benefit rate. Also, hours of work related to these unpaid wages are credited for entrance requirements and for determining the benefit duration³.

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1.9.11 Claim for More than One Type of Benefits

It is not unusual for an insured person to claim more than one type of benefits during a single benefit period. This makes it infinitely more complicated to determine the number of weeks of benefit payable to him or her. In this respect, it is necessary to come to terms with the many statutory provisions that impose specific limits, depending on the types of benefit claimed, on the maximum number of benefits payable and on the duration of the benefit period.

Where the person makes a claim for various types of benefit during a single benefit period and fulfils their entitlement conditions, it then becomes necessary to determine whether the benefits claimed are payable within that benefit period. The number and type of benefits already received,the type of benefits claimed and the time elapsed since the beginning of the benefit period, are all factors that must be considered.

There are several types of benefit that are linked to the person's participation in developmental programs. When the person isemployed under a work sharing agreement, the benefit period is extended by the number of weeks that the person is employed in work sharing while claiming benefits¹.

However, when a person is participating in a job creation partnership or is attending a training course to which he or she has been referred by the authority designated by HRSDC, or is employed under a HRSDC approved self-employment agreement, there is no legislative provision to extend the benefit period by reason of participating in those developmental programs. In these situations, when the benefit period terminates, the personmay then receive financial assistance under the employment benefits provisions²(Part II of the EI Act).

It would not be reasonable to produce every possible scenario for the various types of benefit in a single benefit period. However, we feel that it is appropriate to recap, in six outlines, the main rules to be taken into account for the different types of benefits claimed. Each outline sets out limits 1 and 2, which determine for each type of benefits the maximum number of weeks of benefit payable and the maximum period during which those benefits may be paid respectively. The references to the Act and Regulations are included in the outlines.

By going methodically from one outline to another, and depending on the type of benefits claimed, it can be determined whether those benefits are payable. If the claimant has reached either of the two limits, he or she will no longer be entitled to that or any other type of benefits, because the benefit period has ended.

The six outlines deal with the following:

1. regular benefit;
2. special benefit;
3. work sharing benefit;
4. job creation partnership;
5. authorized training course benefit;
6. approved self-employment benefit.

[September 2006]

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EIR 45, see Outline 3, Work Sharing Benefit;
see Digest 19.2.10.

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chapter 2

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Digest of Benefit Entitlement Principles - Chapter 1

CHAPTER 1

BASIC CONCEPTS

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