Article
Employment Insurance
Date: 03/28/09
New Funding for Employment Insurance
As Statistics Canada reports rapidly rising unemployment numbers and a surge in employment insurance (EI) claims, the Canadian federal government has announced an additional $60 million in funding to improve the delivery of employment insurance.
This is in addition to changes to employment insurance included in the economic plan in the 2009 federal budget which received Royal Assent on March 12, 2009.
Improved Delivery of Employment Insurance
The new funding of $60 million for employment insurance is to speed up the processing of EI claims, to implement an extra five weeks of employment insurance benefits, and to increase the length of work-sharing agreements.
Diane Finley, the Minister of Human Resources and Skills Development who is responsible for the EI system, told a news conference that her department has begun hiring additional staff to handle the increase in employment insurance claims. She said a few hundred people have already been hired, and a few hundred more will be added. Many of those hired are EI specialists who had retired. Although facing a barrage of criticism in the House of Commons from opposition MPs, Finley insists that the government is meeting its "existing target of 80 percent [employment insurance claims] processed within 28 days."
The government has also streamlined the reporting requirements for work-sharing claims to speed up payments and reduce administration for employers. Work-sharing claimants will now be exempted from submitting bi-weekly reports, unless they have "exceptional conditions" to report, such as other employment.
Employment Insurance Changes in Economic Action Plan
The 2009 federal budget introduced a number of changes to Employment Insurance:
Extra Five Weeks of Benefits - this temporary measure makes all individuals whose claims for regular EI benefits begin between March 1, 2009, and September 11, 2010 eligible for five additional weeks of benefits. Individuals who had open claims on March 1, 2009 may also be eligible for additional weeks, and will be informed in writing.
Extending Work-Sharing Agreements - work-sharing agreements let companies avoid layoffs by offering employment income assistance in return for working a reduced work week. The government has extended the length of work-sharing agreements by 14 weeks, to a maximum of 52 weeks, and increased the flexibility in the qualifying criteria. These changes are in effect from February 1, 2009 to April 3, 2010.
Support for Long Tenured Workers - eligible long-tenured workers who participate in longer-term training will get extended income benefits and will be allowed earlier access to regular employment insurance benefits by using all or part of their severance packages to invest in their own training.
Freezing Employment Insurance Premium Rates - the employment insurance premium rate for 2010 has been frozen at $1.73, the same rate as for 2008 and 2009.
Improvements to the Canadian Employment Insurance Program
New Funding for Employment Insurance
As Statistics Canada reports rapidly rising unemployment numbers and a surge in employment insurance (EI) claims, the Canadian federal government has announced an additional $60 million in funding to improve the delivery of employment insurance.
This is in addition to changes to employment insurance included in the economic plan in the 2009 federal budget which received Royal Assent on March 12, 2009.
Improved Delivery of Employment Insurance
The new funding of $60 million for employment insurance is to speed up the processing of EI claims, to implement an extra five weeks of employment insurance benefits, and to increase the length of work-sharing agreements.
Diane Finley, the Minister of Human Resources and Skills Development who is responsible for the EI system, told a news conference that her department has begun hiring additional staff to handle the increase in employment insurance claims. She said a few hundred people have already been hired, and a few hundred more will be added. Many of those hired are EI specialists who had retired. Although facing a barrage of criticism in the House of Commons from opposition MPs, Finley insists that the government is meeting its "existing target of 80 percent [employment insurance claims] processed within 28 days."
The government has also streamlined the reporting requirements for work-sharing claims to speed up payments and reduce administration for employers. Work-sharing claimants will now be exempted from submitting bi-weekly reports, unless they have "exceptional conditions" to report, such as other employment.
Employment Insurance Changes in Economic Action Plan
The 2009 federal budget introduced a number of changes to Employment Insurance:
Extra Five Weeks of Benefits - this temporary measure makes all individuals whose claims for regular EI benefits begin between March 1, 2009, and September 11, 2010 eligible for five additional weeks of benefits. Individuals who had open claims on March 1, 2009 may also be eligible for additional weeks, and will be informed in writing.
Extending Work-Sharing Agreements - work-sharing agreements let companies avoid layoffs by offering employment income assistance in return for working a reduced work week. The government has extended the length of work-sharing agreements by 14 weeks, to a maximum of 52 weeks, and increased the flexibility in the qualifying criteria. These changes are in effect from February 1, 2009 to April 3, 2010.
Support for Long Tenured Workers - eligible long-tenured workers who participate in longer-term training will get extended income benefits and will be allowed earlier access to regular employment insurance benefits by using all or part of their severance packages to invest in their own training.
Freezing Employment Insurance Premium Rates - the employment insurance premium rate for 2010 has been frozen at $1.73, the same rate as for 2008 and 2009.
