About ERI Disclaimer

Unemployment Insurance

In Canada, unlike the U.S. where unemployment insurance is a program of the states, unemployment insurance is a program of the federal government and not the provinces. The program is self-funding from contributions by both employees and employers.

Unemployment Insurance Benefits

Weeks of unemployment benefits has two components:

1. Work component:

1. first 40 weeks - up to 20 weeks of benefits based on one week of benefits for every two weeks of work

2. weeks beyond 40 - up to 12 weeks based upon one week benefits for each week of work.

2. Regional Unemployment Rate - up to 26 weeks of benefits based on two weeks for every percentage point by which the regional unemployment rate exceeds 4%.

Benefit Rates

The maximum weekly UI benefit in 1996 is $413 or 55% of maximum insurable wages. For lower income applicants with dependents the percentage can be increased but not to exceed the $413.

Eligibility

Applicant must have:

1. been an employee in an organization contributing to the program,

2. dismissed for "just cause" and not fired for misconduct,

3. earned a minimum amount (20% of weekly maximum insurable earnings),

4. have 20 or more weeks of insurable earnings, except that in areas of high unemployment this may be reduced as far as 12 weeks.

Premium Reduction

The employer unemployment insurance premiums may be reduced below the 1.4 times the employee rate under certain circumstances. To be eligible for premium reduction an organization must:

1. have a formal commitment to providing disability income to employees,

2. employees must become eligible for disability after three months of employment,

3. benefits must start on the 15th day after disability,

4. when cession of benefits occur on termination, this restriction may only be for employees whose disability occurred within two months of termination,

5. the benefit level must be at least 60% of earnings,

6. benefits cannot be reduced by unemployment insurance,

7. employees returning to work must have full coverage reinstated.

At east 5/12 of the saved premium must be shared with employees.

Special Benefits

• Maternity Benefits - A pregnant employee is entitled to 15 weeks of benefits provided she has been employed for 20 or more weeks prior to the pregnancy.

• Parental Benefits - A new parent, by birth or adoption, is entitled to 10 weeks of benefits.

• Sick Benefits - An employee may be entitled to up to 15 weeks of benefits for sickness, accident or quarantine.

• Combined Benefits - The above special benefits may be combined up to a maximum of 30 weeks.