October 30, 2012
CNLA clarifies changes to Working While on Claim program
CNLA clarifies changes to Working While on Claim program
In the spring of 2012, the Government of Canada announced changes to the Employment Insurance (EI) program that offered a new method for people 'working while on claim', which was intended to encourage people to work part-time. At first review this seemed like a welcome change; however as details have become available this could be a reduction in benefit for many in our industry. Over the last several weeks seasonal industries have grown more and more concerned.
As of last week, HRSDC announced that EI recipients that received benefits in the past year while working on claim (Aug. 7, 2011 - Aug. 4, 2012) will be able to choose between two pilot EI projects with different benefit structures. Anyone who does not meet the two criteria will not have the option to choose which benefit structure they receive.
Model 1: 100 per cent reduction in benefit on earnings above $75 or 40 per cent of benefit whichever is greater.
Model 2: 50 per cent reduction in benefit on earnings starting at first dollar earned.
Each EI claimant who qualifies will be required to request Model 1 each year they make a claim, or they will be automatically enrolled in the new option. Opting into the new model will disqualify claimants from selecting the previous model in future years. Claimants cannot change models during a claim or year.
For employees who do occasional work during their lay-off, it may have greatly varying impacts on income depending on the number of hours worked each week. The following chart shows two examples of how this may impact individuals. Each example assumes a weekly employment insurance benefit of $300 and a wage of $15 per hour. Model 1 uses the $75 or 40 per cent of benefit ($120) while Model 2 uses the 50 per cent wage reduction. Each model is compared for someone working 5/10/20 hours per week while claiming EI benefits.
We are encouraging employers to guide 'working on claim' employees through these changes and help them select which option is best for their situation.
The above changes along with the previously announced changes to limit frequent users and increase pressure to find alternate employment are likely going to have a direct impact on many within our industry.
Previously announced changes:
Long-tenured workers: These workers, who have been employed for most of the past 10 years, will have 18 weeks to look for a job within their field and at 90 per cent or more of their former wage. As time passes, the workers would have to expand their search to "similar" jobs at 80 per cent of their previous hourly wage.
Frequent claimants: These are workers who have made three or more claims and received over 60 weeks of benefits in the past five years. Frequent claimants would have to accept a "similar" job from the day they receive EI and accept wages at 80 per cent of their previous wage. After seven weeks, they would be required to take any work they are qualified for and accept wages at 70 per cent.
Occasional claimants: The rest of the claimants fall under this category. These people can search for jobs in their current field at 90 per cent of the pay for the first six weeks of their claim. After seven weeks, the search has to be broadened to "similar" jobs at 80 per cent of their earnings. Once 18 weeks have passed, they would be required to take any work they are qualified for at 70 per cent of the wages.
CNLA is currently in the planning stages for our annual Day-on-the-Hill meetings with a strong focus on HR issues, including the EI policy changes. We are seeking an exemption for our industry in order to develop strategies for reducing the impact of seasonality, as well as clarification on several issues. Further info will be released as soon as we can confirm most of the answers.
CNLA polls members on EI changes
Given the scope and potential impact of these changes we are asking all members to participate in a survey on Employment Insurance. The data we collect from this survey will aid us greatly in assessing and communicating the affects of these reforms to government.
Please take 10-15 minutes to fill out the following survey: https://www.surveymonkey.com/s/WT59LDK
For more information on the EI reforms or other matters please contact Joel Beatson at CNLA, joel@cnla-acpp.ca or 1-888-446-3499 extension 8610.
EI claimants can also contact Service Canada for general information. More information is available at servicecanada.gc.ca.
In the spring of 2012, the Government of Canada announced changes to the Employment Insurance (EI) program that offered a new method for people 'working while on claim', which was intended to encourage people to work part-time. At first review this seemed like a welcome change; however as details have become available this could be a reduction in benefit for many in our industry. Over the last several weeks seasonal industries have grown more and more concerned.
As of last week, HRSDC announced that EI recipients that received benefits in the past year while working on claim (Aug. 7, 2011 - Aug. 4, 2012) will be able to choose between two pilot EI projects with different benefit structures. Anyone who does not meet the two criteria will not have the option to choose which benefit structure they receive.
Model 1: 100 per cent reduction in benefit on earnings above $75 or 40 per cent of benefit whichever is greater.
Model 2: 50 per cent reduction in benefit on earnings starting at first dollar earned.
Each EI claimant who qualifies will be required to request Model 1 each year they make a claim, or they will be automatically enrolled in the new option. Opting into the new model will disqualify claimants from selecting the previous model in future years. Claimants cannot change models during a claim or year.
For employees who do occasional work during their lay-off, it may have greatly varying impacts on income depending on the number of hours worked each week. The following chart shows two examples of how this may impact individuals. Each example assumes a weekly employment insurance benefit of $300 and a wage of $15 per hour. Model 1 uses the $75 or 40 per cent of benefit ($120) while Model 2 uses the 50 per cent wage reduction. Each model is compared for someone working 5/10/20 hours per week while claiming EI benefits.
We are encouraging employers to guide 'working on claim' employees through these changes and help them select which option is best for their situation.
The above changes along with the previously announced changes to limit frequent users and increase pressure to find alternate employment are likely going to have a direct impact on many within our industry.
Previously announced changes:
Long-tenured workers: These workers, who have been employed for most of the past 10 years, will have 18 weeks to look for a job within their field and at 90 per cent or more of their former wage. As time passes, the workers would have to expand their search to "similar" jobs at 80 per cent of their previous hourly wage.
Frequent claimants: These are workers who have made three or more claims and received over 60 weeks of benefits in the past five years. Frequent claimants would have to accept a "similar" job from the day they receive EI and accept wages at 80 per cent of their previous wage. After seven weeks, they would be required to take any work they are qualified for and accept wages at 70 per cent.
Occasional claimants: The rest of the claimants fall under this category. These people can search for jobs in their current field at 90 per cent of the pay for the first six weeks of their claim. After seven weeks, the search has to be broadened to "similar" jobs at 80 per cent of their earnings. Once 18 weeks have passed, they would be required to take any work they are qualified for at 70 per cent of the wages.
CNLA is currently in the planning stages for our annual Day-on-the-Hill meetings with a strong focus on HR issues, including the EI policy changes. We are seeking an exemption for our industry in order to develop strategies for reducing the impact of seasonality, as well as clarification on several issues. Further info will be released as soon as we can confirm most of the answers.
CNLA polls members on EI changes
Given the scope and potential impact of these changes we are asking all members to participate in a survey on Employment Insurance. The data we collect from this survey will aid us greatly in assessing and communicating the affects of these reforms to government.
Please take 10-15 minutes to fill out the following survey: https://www.surveymonkey.com/s/WT59LDK
For more information on the EI reforms or other matters please contact Joel Beatson at CNLA, joel@cnla-acpp.ca or 1-888-446-3499 extension 8610.
EI claimants can also contact Service Canada for general information. More information is available at servicecanada.gc.ca.