Employment Insurance Changes in 2012

Government Outlines Changes Coming to Employment Insurance

Updated: 08/30/12

The Canadian federal government is planning changes to theEmployment Insurance (EI) program to make it more efficient in connecting unemployed Canadians with work. The broad changes are part of the massive omnibus legislation implementing the 2012 Federal Budget that received Royal Assent June 29, 2012. The details of the changes will be fleshed out by regulation which are expected to be in place by early 2013.

The main areas where the program will change are:

• measures to better connect the EI program and the Temporary Foreign Workers program so that unemployed Canadians are informed of and can apply for vacant jobs before employers are approved to hire temporary foreign workers
• ensuring that EI recipients receive comprehensive job postings on a daily basis from multiple sources
• better defining and strengthening the requirements for what is considered "suitable employment" for EI claimants
• better defining and strengthening the requirements for what is considered a "reasonable job search" for EI claimants

The changes only apply to Canadians receiving regular and fishing EI benefits. They do not apply to EI special benefits of maternity, parental, compassionate, and sick leave.

Connecting Employment Insurance Program and Temporary Foreign Workers Program

The federal government plans to do more to share information between the Employment Insurance program and the Temporary Foreign Workers program so that Canadians can be hired before employers apply to bring in foreign workers. In her presentation on the EI changes, Diane Finley, Minister responsible for the Employment Insurance program, gave examples where some employers were allowed to bring in temporary foreign workers while unemployed Canadians/permanent residents were making claims for Employment Insurance in the same occupation and province. The EI program is also going to do what it can to make sure EI claimants are informed of those job opportunities.

Connecting Canadians With Available Jobs

EI claimants currently receive notice of three relevant job postings when they apply for EI and when they complete their online report every two weeks. Some don't receive any though, because the only source the EI program is using is the federal government Job Bank, which carries only about a fifth of jobs advertised online in Canada. The EI Program will expand its Job Alerts for EI claimants to twice a day, will expand its range of sources, and will include jobs in related occupational sectors in addition to those in the claimant's chosen occupation. Even though claimants would not be required to accept jobs outside a reasonable commuting distance, they would also receive job postings from other areas of Canada to give them an idea of the current labour market across the country. The new system will also provide information on the demand and current wage rates of relevant occupations.

New Definition of Suitable Employment

Six basic criteria will go into the new definition of "suitable employment":

• personal circumstances - physical or health problems, limited transportation options
• working conditions
• hours of work
• commuting time - up to one hour or the average for the community
• type of work - will vary based on the claimant’s EI history and duration of EI claim
• wages - will vary based on the claimant’s EI history and duration of EI claim

The type of work and wages would vary depending on the worker category the claimant falls into. The maximum benefit is 55 percent of the claimant's average weekly earnings. The maximum weekly amount is $485.

• Long-tenured workers - claimants who have paid into EI for the past seven of 10 years and over the last five years have received 35 or fewer weeks of EI regular or fishing benefits. For the first 18 weeks, these claimants would be required to accept work in their usual occupation and accept a salary of 90 percent of their previous salary. After 18 weeks, they would be required to expand their search to include similar occupations and accept wages starting at 80 percent of their previous hourly wage.
• Frequent claimants - claimants who had three or more regular or fishing claims and received more than 60 weeks of regular or fishing benefits in the last five years. These claimants would be required to do an expanded job search for jobs similar to their usual occupation at 80 percent of their previous hourly wage right from the beginning of their claim. After six weeks they would be expected to expand their search to any work they are qualified to do (with on-the-job training if necessary) and accept wages at 70 percent of their previous hourly wage.
• Occasional claimants - all others. These are claimants who have limited experience in being unemployed and looking for work. They would be allowed to limit their search to their usual occupation and accept a salary of 90 percent of their previous hourly wage for the first six weeks of their claim. At seven weeks they would be required to expand their search to include jobs similar to their usual occupation and accept wages at 80% of their previous hourly wage. After 18 weeks they would be expected to expand their search to any work they are qualified to do (with on-the-job training if necessary) and accept wages at 70 percent of their previous hourly wage.

New Definition for Reasonable Job Search

Keeping in mind their definition of suitable employment, EI claimants will be expected to

• research and assess job prospects
• prepare a resume
• search for job vacancies
• apply for positions
• attend interviews
• undertake other efforts to improve their employability (e.g. attend workshops, go to employment agencies, attend job fairs, network).

EI claimants will be required to look for a job every day they receive EI benefits. They will also be required to keep a record of their job search activities, and submit evidence when requested.

Posted in: Employment in Canada