The coronavirus outbreak has closed borders, schools and businesses around the world. The movements and mobility of hundreds of millions of people has been dramatically limited. The government has recommended that Canadians self quarantine in their homes in order to stop the virus.
This self isolation means that many Canadians will forgo paychecks and may have to rely on Employment Insurance, also known as EI. Justin Trudeau and the Liberal government laid out their Covid-19 pandemic plans on Wednesday, a 82 billion aid package which includes $27 billion in support for those who have taken time off to support family members.
The package which has yet to be approved by Parliament will loosen the restriction on who qualifies for Employment Insurance by including two emergency benefits for those who may not qualify for regular Employment Insurance.
What is Employment Insurance?
Employment Insurance also known as E.I benefits aims to provide temporary income replacement to Canadians who may have lost their jobs through no fault of their own due to re-structuring, shortage of work, seasonal lay-offs, etc. Run by Employment and Social Development Canada, (ESDC), the program aims to minimize the financial hardship during this difficult time by providing a taxable weekly benefit that can last for 14-45 weeks. For 2020, the maximum yearly insurable earnings is $54,200 or $573 per week.
Eligibility
To qualify for regular benefits, you must meet the following criteria:
- Lost your job through no fault on your own (restructuring, shortage of work, seasonal) Keep in mind that if you quit your job voluntarily, you may not qualify for EI.
- You paid into employment insurance during time of employment
- Have been unemployed and without salary for at least a week in the last 52 weeks
- You were employed for a minimum of 420 and 720 hours during the qualifying period which is 52 weeks or since the start of your last EI claim, whichever is shorter.
- You’re ready and willing to work each day and actively looking for employment. (You must keep a list of employers that you’ve contacted about employment opportunities)
From time to time, you have to do bi-weekly reporting in order to confirm your eligibility on a continuous basis.
You will not qualify for EI benefits if
- If you left your job voluntarily
- If you’re in jail
- If you were dismissed with cause
- If you’re part of a lockout or strike
Applying for Employment Insurance
To apply for EI, applications need to provide a medical certificate in addition to a record of employment, however, due to the quarantine, ROE can be waived. To apply for Employment Insurance benefits, you can do it online at the following website. There is typically a 1 week waiting period but this can be waived by calling the government’s toll free number at 1-833-381-2725 or teletypewriter at 1-800-529-3742. Applicans who are not comfortable using a computer may apply at a local Service Canada office if they’re in good health.
- Online Application – https://www.canada.ca/en/services/benefits/ei/ei-sickness/apply.html
- Service Canada – Locate an office https://www.servicecanada.gc.ca/tbsc-fsco/sc-hme.jsp?lang=eng
What If You Don’t Qualify?
As part of the aid package, the government will allow you to apply for Emergency Care Benefit and Emergency Support Benefit.
Emergency Care Benefit – will provide you with up to $900 every two weeks for up to 15 weeks to whose affected by coronavirus or Covid-19. This emergency care benefit is for individuals who may not qualify for regular EI benefits, cannot work or don’t have paid sick leave. The individuals who can apply also includes the self employed or those who are staying home to take care of a family member diagnosed with coronavirus that may not qualify. This includes parents that might stay home to take care of the children due to school closures.
Emergency Support Benefit – This will provide up to $5 billion to workers who cannot qualify for regular EI and might face unemployment. The goal of the program is to provide income replacement but the details of how much and how long is yet to be determined. Both plans will be available in April. Those interested may apply through CRA’s website.
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