HUMA Committee binder: Appearance of Minister Qualtrough and Deputy Minister Flack - April 15 2021

Official title: Appearance of Minister of Employment, Workforce Development and Disability Inclusion: Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) - April 15, 2021

On this page

Opening Statement

  1. Opening remarks

Top Issues

  1. List of ESDC Measures
  2. EI Benefits including Temporary Changes to the EI Program
  3. Timeline - EI Legislative Changes since 2015
  4. EI - Canada Recovery Benefit
  5. EI - Canada Recovery Sickness Benefit
  6. EI - Canada Recovery Caregiving Benefit
  7. EI - Loss of a Child
  8. EI - PBO Costing Report
  9. EI - Victims of Identity Theft
  10. EI Boundaries / Economic Zones
  11. Migrant Workers Access to EI
  12. EI - Seasonal Workers (including pilot project)
  13. CERB Repayment

Miscellaneous

  1. Benefit Delivery Modernization (including system modernization)
  2. EI Independent Review (including Support for Self-Employed Workers)
  3. Basic Income
  4. EI Processing
  5. EI ERB Hot Sheet
  6. EI benefit/Unemployed Ratio
  7. Recovery Benefits Hot Sheet
  8. Clients having trouble accessing recovery benefits
  9. OAG Audit on CERB
  10. C-265 Speaker’s Ruling (if available by the 15th)
  11. C-220 Bereavement Leave and EI interaction
  12. Extension of EI sickness benefit

Committee and Parliamentary Information

  1. Parliamentary Background and Analysis
  2. Committee Membership and Biographies
  3. HUMA 2016 EI report and government response
    1. HUMA 2016 EI Report
    2. HUMA 2016 government response
  4. PBO Report - Distributional and Fiscal Analysis of a National Guaranteed Basic Income

1. Opening remarks

Official title: Speaking notes for the Minister of Employment, Workforce Development and Disability Inclusion, Carla Qualtrough appearance before the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) EI Program Reform April 15, 2021

Check against delivery

2021 PA 0223

Mr. Chair and Committee members.

Thank you for inviting me to join you today as part of your study of the Employment Insurance program. I would like to acknowledge that I am joining you from the traditional territory of the Tsawwassen and Musqueam First Nations.

I thank you for the work you’ve already done to study the program. I understand you’ve already met with officials from my department and other witnesses on this subject. I hope to be able to provide you today with some context and to answer your questions.

Even before the pandemic, we knew that the EI system was due for reform. While it has been Canada’s largest labour market program for 80 years, it hasn’t kept up with the way Canadians work. When the pandemic hit, there were so many people who weren’t eligible for EI that we had to create the CERB to capture everybody we wanted to help.Footnote 1

I think everyone here can agree that Canada needs an EI system for the 21st century. We need a system that aligns with the realities of today’s labour market that includes gig workers and the self-employed.

Flowing from last fall’s Speech from the Throne and my mandate letter, I am committed to bringing forward a plan for such a system. People know that I’m a system fixer, and that I love this kind of work. But of course I’m not acting alone. In fact, we’ll be working together – even across party lines to get this done.

We’ve already made temporary changes to the EI system. We’ve been doing this throughout the pandemic – in collaboration with opposition parties – to help workers stay safe, healthy and solvent. In fact, just last month, Bill C-24 received Royal Assent. This new legislation has increased the maximum number of weeks available to workers through EI regular benefits to 50 weeks for claims established between September 27, 2020 and September 25, 2021. It also contains a temporary change that helps registered self-employed workers access special benefits at a lower earnings threshold until the temporary measures end on September 25, 2021. Over the past year, we’ve also implemented critical updates to our IT systems so that they are now more robust than they were before the pandemic.

We’ve also been making headway with other key commitments to strengthen EI – especially around looking to increase the number of weeks for the EI sickness benefit, and to look at improving benefits for seasonal workers.

[Pause]

But there is more to do, and the EI system in Canada is not only about benefits. It also has a number of mechanisms to help people stay connected to the labour force.

For example, there are policies for working while on claim and access to training and work-sharing. We need to consider these tools and others as we reform the system. People end up unemployed for many reasons, but keeping them connected to the labour market is key.

We know that Canadians want to work. Evidence from last year's labour market data clearly shows that when there is work available, Canadians take these jobs.

Going forward, training and upskilling are going to be even more crucial for Canadian workers. The pandemic has accelerated labour market trends that were already underway, with evolving skills needs and continued labour shortages in some areas.

In the meantime, we are providing support to more than 4.2 million Canadians through the current EI system and Canada Recovery Benefits, and making appropriate adjustments as the pandemic warrants.

I would now be pleased to answer any questions you might have.

Thank you.

- 30 -

2. Description and costing of ESDC COVID measures (Announced)

Training/Transfer to PTs

Measure

Additional investment of $1.5B in the WDAs with PTs

Funding Decision

[Redacted]

Authority

$1.5B 2020 to 2021

Additional Information

[Redacted]

Measure

Additional flexibilities under the WDA and LMDA

Funding Decision

[Redacted]

Authority

N/A

Additional Information

Broadened eligible expenditures to include upgrades of physical spaces to meet new health and safety requirements and enhanced wrap-around supports to individuals.

Allow PTs to carry forward up to 20% in unspent funds from their total funding allocation from 2020 to 2021 to 2021 to 2022 for both the LMDAs and WDAs.

Temporary changes to the timing of 2020 to 2021 transfer payments and the related PTs deliverables to allow funds to flow sooner under the WDA and LMDA.

A temporary change to the definition of an “insured participant” to allow PTs to be able to provide skills training and employment supports under the LMDA to these claimants.

Measure

Training

Funding Decision

[Redacted]

Authority

[Redacted]

Additional Information

In 2021 to 2022 and targeting Indigenous Skills and Employment Training Program ($144.2M), the Foreign Credential Recognition Program ($15M), the Opportunities Fund for Persons with Disabilities ($65M); and in 2021 to 2022 and 2022 to 2023, targeting the Women’s Employment Readiness Canada pilot project ($50M over 2 years).

Employment Insurance

Measure

Waive the one-week waiting period for EI sickness from Sept 27 2020 to Sept 25 2021.

Funding Decision

[Redacted]

Authority

ESDC did not seek funding for this item.

Additional Information

$5M

Measure

Waive the waiting period for all EI benefits from January 31, 2021 to September 25, 2021.

Funding Decision

[Redacted]

Authority

Included in the EI account forecasted benefit spending.

Additional Information

N/A

Measure

Waive the requirement to provide a medical certificate to access EI sickness benefits between September 27 2020 to September 25, 2021.

Funding Decision

[Redacted]

Authority

No cost associated

Additional Information

N/A

Measure

Extension of the Work-Sharing Program.

Funding Decision

[Redacted]

Authority

Operating Funding:

Additional Information

Since February 28, 2020 and as of March 28, 2021, 7,469 Work-Sharing (WS) applications have been received. Of those applications, 4,361 WS agreements have been approved, representing an estimated total agreement value of $1.5 billion dollars. The agreements have supported over 131,000 participants and averted about 61,000 layoffs.

Measure

Temporary Changes to EI to Improve Access:

Funding Decision

[Redacted]

Authority

Included in the EI account forecasted benefit spending.

Additional Information

N/A

Measure

Extending Employment Insurance Regular Benefits by up to 24 weeks.

Funding Decision

[Redacted]

Authority

Operating funding:

$22.2M in 2021 to 2022

$1.4M in 2022 to 2023

Total: $22.6M

Additional Information

N/A

Non-EI Eligible

Measure

Canadian Emergency Response Benefit (CERB)

Retroactivity ended December 2

2020

Funding Decision

[Redacted]

Authority

Revised authority

$76.5B in 2020 to 2021

[Redacted]

Additional Information

As of October 4th, 2020 (CRA and EI combined):

Measure

Canada Recovery Benefit (CRB)

Funding Decision

[Redacted]

Authority

Revised authority

$10.1B in 2020 to 2021

$3.4B in 2021 to 2022 pending revision

Total $13.5B

Additional Information

As of March 5, 2021, since launch:

Measure

Canada Recovery Sickness Benefit (CRSB)

Funding Decision

[Redacted]

Authority

Revised authority:

$780M in 2020 to 2021

$2.4B in 2021 to 2022

pending revision: 2,4 G$ in 2021 to 2022

Total $3.2B

Additional Information

As of March 5, 2021, since launch:

Measure

Canada Recovery Caregiving Benefit (CRCB)

Funding Decision

[Redacted]

Authority

Revised authority:

$2.9B in 2020 to 2021

$4.5B in 2021 to 2022

pending revision: 4,5 G$ in 2021 à 2022

Total $7.4B

Additional Information

As of March 5, 2021, since launch:

Measure

Integrity related to the CERB and CESB, including administration costs

Funding Decision

[Redacted]

Authority

$211M in 2021 to 2022

$101M in 2022 to 2023

$73M in 2023 to 2024

$59M in 2024 to 2025

Total: $444M

Additional Information

N/A

Temporary Foreign Workers

Measure

TFW Program

Funding Decision

[Redacted]

Measure

Protecting the health and safety of farm workers

Funding Decision

[Redacted]

Authority

$23.6 in 2020 to 2021

Additional Information

$7.4 million to increase supports to temporary foreign workers, including $6 million for direct outreach to workers delivered through migrant worker support organizations. To date $5.3 million has been provided through contribution agreements.

$16.2 million to strengthen the employer compliance regime, particularly on farms, and making improvements to how tips and allegations of employer non-compliance are addressed. This funding has included conducting an additional 3,000 inspections.

Students

Measure

Canada Emergency Student Benefit

Funding Decision

[Redacted]

Authority

Revised authority:

$3.03B in 2020 to 2021

[Redacted]

Additional Information

$1,250/month

$2,000/month if have dependant(s) or a disability

The CESB provided $2.95 billion to over 709,000 students and recent graduates.

Measure

Canada Student Loan Program – Repayment Moratorium

Funding Decision

[Redacted]

Authority

$186M in 2020 to 2021

Part of the CSLP statutory forecast.

Additional Information

Paused from March 30, 2020 to September 30, 2020. Approximately 1.3 million student loan borrowers benefited.

Measure

Double the Canada Student Grants (2020 to 2021 school year)

Funding Decision

[Redacted]

Authority

$1.55B in 2020 to 2021

Part of the CSLP statutory forecast.

Additional Information

Up to $6000 for full-time students

Up to $3600 for part-time students

Doubling of the Canada Student Grant for Students with a Permanent Disability and Students with Dependants

Measure

No student or spousal contribution in 2020 to 2021 for student loans/grants.

Funding Decision

[Redacted]

Authority

$88.7M in 2020 to 2021

Part of the CSLP statutory forecast.

Additional Information

Average student $1700 (max $3000)

Average spousal $3000 (up to 10% family)

Measure

Increase the maximum weekly amount of Canada Student Loans from $210 to $350 for 2020 to 2021 school year.

Funding Decision

[Redacted]

Authority

$286.7M in 2020 to 2021

Part of the CSLP statutory forecast.

Additional Information

N/A

Measure

Supports for Student Learning Program

Funding Decision

[Redacted]

Authority

$15M in 2020 to 2021 pursuant to section (2)1 of the Public Health Events of National Concern Payments Act, and concurrence from the Minister of Finance and Minister of Health to access funding from the Consolidated Revenue Fund.

Additional Information

Support for an anticipated 14,700 vulnerable children and youth to persist in their studies, complete high school and transition to post-secondary education. Funding has helped 7 organizations in the after-school space to digitize delivery of wraparound supports, such as tutoring and mentoring, and increase students’ access to laptops and internet services.

Measure

Medical and Parental Leave for student loan borrowers

Funding Decision

[Redacted]

Authority

$8.7M in 2020 to 2021

Part of the CSLP statutory forecast.

Additional Information

Effective October 1, 2020, the Government of Canada introduced a new Medical and Parental Leave for students taking temporary leave from their studies for medical or parental reasons, including mental health reasons. It offers interest and payment-free for 6-month periods, up to a maximum of 18 consecutive months.

Measure

Elimination of Interest on Student Loans (1-year), April 2021 to March 22

Funding Decision

[Redacted]

Authority

$329.4M in 2021 to 2022

Part of the CSLP statutory forecast.

Additional Information

Eliminate the interest on repayment of the Canada Student Loans and Canada Apprentice Loans for 2021 to 2022.

Youth

Measure

Youth Employment and Skills Strategy (YESS) is a horizontal initiative delivered by ESDC and 10 other departments, Crown corporations and Agencies

Funding Decision

[Redacted]

$187.7M COVID-19 funding. ($40M for ESDC and an additional $147.7M for YESS partners)

Authority

Redacted]

$187.7M in 2020 to 2021

Additional Information

Provide approximately 45,300 job placements in 2021 to 2022 for young people.

COVID-19 funding in 2020 to 2021 provided an additional 13,600 placements.

Measure

Student Work Placement Program

Funding Decision

[Redacted]

Authority

$266.1M in 2020 to 2021

Additional Information

Support up to 340,000 work-integrated learning opportunities in 2020 to 2021 (15,000 opportunities with base funding + 25,000 opportunities with COVID-19 investments).

Measure

Changes to the Canada Summer Jobs program

Funding Decision

[Redacted]

Authority

$447.5M in 2021 to 2022

$61.7M in 2020 to 2021

Additional Information

Support up to 120,000 job placements through Canada Summer Jobs in 2021 to 2022 – an increase of 40,000 from 2020 to 2021 levels (when excluding COVID additional 10,000 work placements).

Measure

Canada Student Service Grant

Funding Decision

[Redacted]

Authority

Authority forecast revised in Supplementary Estimates B to $0

Additional Information

In July 2020, WE Charity Foundation withdrew from delivery of the Canada Student Service Grant (CSSG). Following this, the Contribution Agreement with the WE Charity Foundation was terminated. The $30M in funds that were advanced to WE Charity Foundation have been returned to the Government of Canada.

The Government did not move forward with the CSSG.

Measure

Canada Service Corps Micro Grant

Funding Decision

[Redacted]

Authority

$63M not spent

[Redacted]

Additional Information

ESDC was negotiating a COVID-specific contribution agreement to deliver on the commitment to expand the number of available micro-grants from 1,800 to 15,000. In August 2020, it was determined that the project was no longer feasible.

Early Learning and Child Care

Measure

Federal Secretariat

Funding Decision

[Redacted]

Authority

[Redacted]

Additional Information

N/A

Measure

Indigenous Early Learning and Child Care Secretariat

Funding Decision

[Redacted]

Authority

[Redacted]

Additional Information

N/A

Measure

Transfer to PTs and Indigenous organizations

Funding Decision

[Redacted]

Authority

[Redacted]

Additional Information

Based on 2027 to 2028 funding level

Measure

ECE Workforce

Funding Decision

[Redacted]

Authority

[Redacted]

Additional Information

N/A

Vulnerable/Community

Measure

Emergency Community Support Fund

Funding Decision

[Redacted]

Authority

$350M in 2020 to 2021

Additional Information

$80M – Red Cross

$157M – United Way

$112M – Community Foundations

$1M O and M

Measure

Supporting people experiencing homelessness (ESDC)

Funding Decision

[Redacted]

Authority

$15M in 2019 to 2020

$394M in 2020 to 2021

Total $409.2M

[Redacted]

Not ESDC measure

Additional Information

$157.5M – Reaching Home – Round One

$236.7M – Reaching Home – Round Two

$15M (2019 to 2020) – departmental lapses

$299.4M – Reaching Home – FES announcement (continued emergency funding + prevention of homelessness)

Measure

Supporting women and children fleeing violence (WAGE + ISC)

Funding Decision

[Redacted]

Authority

Not ESDC measure

Additional Information

$40M through WAGE

$10M through Indigenous Services Canada

Measure

Addressing Labour Shortages in Long-Term and Home Care

Funding Decision

[Redacted]

Authority

$25.3M in 2020 to 2021

$13.2M in 2021 to 2022

Total: $38.5M

Additional Information

N/A

Seniors

Measure

One-time payment for Seniors

Funding Decision

[Redacted]

Authority

$2.5B in 2020 to 2021

Additional Information

Tax free $300 for seniors eligible for the OAS and additional $200 for GIS and Allowance recipients

Measure

Supporting organizations that provide essential services to seniors

Funding Decision

[Redacted]

Authority

$9M in 2019-2020

Additional Information

Through the United Way

Measure

New flexibilities under the New Horizons for Seniors Program

Funding Decision

[Redacted]

Authority

$20M in 2020 to 2021

Additional Information

Community Based Projects

Measure

Extending GIS and Allowance payments

Funding Decision

[Redacted]

Authority

N/A

Additional Information

Temporarily extending GIS and Allowance payments if seniors’ 2019 income information has not been received.

Persons with Disabilities

Measure

One Time Payment to Persons with Disabilities

Funding Decision

$849M

Authority

$849M in 2020 to 2021

$11M in 2021 to 2022

[Redacted]

Additional Information

A one-time, tax-free, non-reportable, payment of up to $600 (seniors eligible for OAS, would receive $300; for OAS and GIS, $100) to help with extra costs incurred by persons with disabilities because of the Covid-19 pandemic.

To date more than 1.7 million persons with disabilities have benefitted from the OTP.

The first batch of payments was released on October 30, 2020 to the majority of eligible Canadians with disabilities. The second batch of payments was issued in January 2021, and a 3rd, and final batch of 65,000 payments are expected to be released April 23 2021.

Measure

Providing resources to improve workplace accessibility and access to jobs

Funding Decision

[Redacted]

Authority

$15M in 2020 to 2021

Additional Information

For community organizations to improve workplace accessibility.

Measure

COVID-19 Disability Advisory Group

Funding Decision

[Redacted]

Authority

N/A

Additional Information

The Government of Canada established the COVID-19 Disability Advisory Group, comprised of experts in disability inclusion, to provide advice on: the lived experiences of persons with disabilities during this crisis; along with disability specific issues; challenges and systemic gaps; and strategies, measures and steps to be taken in response, in keeping with a “Nothing Without Us” approach. With a recently renewed and expanded mandate, the Advisory Group will build on previous work advising the Minister and provide ongoing expert advice on disability inclusion within Government priorities and on implementation of Government programs and policies.

Measure

Funding to Support Communications and Engagement Activities Related to COVID-19

Funding Decision

[Redacted]

Authority

$1.1M funded internally within ESDC

Additional Information

Funding to national disability organizations through the Social Development Partnership Program - Disability Component in order to tailor communications and engagement activities to the varying needs of persons with disabilities in addressing the impact of COVID-19.

Federally Regulated Workplaces

Measure

Waive the requirement to provide a medical certificate to access the medical leave

Funding Decision

[Redacted]

Authority

No cost associated

Additional Information

N/A

Measure

Leave related to COVID-19

Funding Decision

[Redacted]

Authority

No cost associated

Additional Information

N/A

Measure

Extend the periods for temporary lay-offs

Funding Decision

[Redacted]

Authority

No cost associated

Additional Information

N/A

Other

Measure

Improving our Ability to Reach All Canadians

Funding Decision

[Redacted]

Authority

$16M in 2020 to 2021

$16M in 2021 to 2022

Total: $32M

Additional Information

1-800-O-Canada

Canada.ca

Indigenous Outreach

Measure

Supporting the Ongoing Delivery of Key Benefits

Funding Decision

[Redacted]

Authority

$13M in 2020 to 2021

Additional Information

Resumption of In-Person Access to Services

Measure

Funding to support business resumption for federally regulated employers

Funding Decision

[Redacted]

Authority

$0.5Min 2020 to 2021

$2M in 2021 to 2022

Total: $2.5M

Additional Information

N/A

Measure

Covid-19 Communication and Marketing

Funding Decision

[Redacted]

Authority

$900K in 2020 to 2021

Additional Information

Essential Services Jobs/Job Bank advertising campaign

3. EI Benefits including temporary changes to the EI Program

Context

How is the Employment Insurance (EI) program supporting Canadians who remain unable to work and may have had their EI eligibility impacted by the COVID-19 pandemic?

Suggested Response

Background

The Employment Insurance (EI) program provides eligible workers with temporary support to partially replace lost employment income. These benefits include regular and fishing benefits for eligible unemployed workers while they look for employment or upgrade their skills, and special benefits for workers who take time off due to specific life events such as illness, pregnancy, to care for a newborn or newly adopted child, to provide care or support to a critically ill or injured family member or a family member requiring end of life care.

As of September 27, 2020, the following temporary changes have been made to the EI program that will have effect for 1 year:

The Government has also temporarily waived the need to submit a medical certificate for EI claimants who establish a new claim for EI Sickness benefits and implemented temporary measures to support self-employed fish harvesters who rely on EI fishing benefits in the off-season.

To support small businesses and workers, the Government of Canada has also frozen the EI premium rate for 2 years at the current 2020 rate of $1.58 per $100 of insurable earnings.

In addition, the Government of Canada has confirmed that it will be crediting the EI Operating Account for the costs related to the Canada Emergency Response Benefit.

In early January 2021, Canada experienced an increase in COVID-19 infections, which resulted in additional public health measures and increased financial pressure on workers. In response, the Government of Canada waived the waiting period for all new EI claims established from January 31, 2021 until September 25, 2021. This enables eligible workers to be paid for the first week of unemployment.

On March 18, 2021, the Government temporarily increased the maximum number of weeks available for workers claiming EI regular benefits. The change allows eligible claimants to receive a maximum of 50 weeks for claims made between September 27, 2020, and September 25, 2021.

Prepared by

Name: Teanna Lackner

Title: Policy Analyst

No phone number:

Key contact

Name: Steven Coté

Title: A/Executive Director

Phone number: 819-576-2722

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in SADMO / COO:

4. EI legislative changes since 2015

Context

What changes has the Government made to improve the EI program since 2015?

Suggested Response

Background

Prepared by

Name: Aline Chalifoux

Title: Senior Policy Analyst

Key contact

Name: Steven Coté

Title: A/Executive Director

Phone number: 819-576-2722

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in SADMO / COO: April 7, 2021

5. EI - Canada Recovery Benefit

Context

How is the Government continuing to help Canadians who still can’t resume work, and who are not eligible for Employment Insurance (EI)?

Suggested Response

Background

On October 2, 2020, the Government announced the introduction of 3 temporary recovery benefits to support Canadians who are unable to work due to COVID-19.

On March 18, the Government of Canada announced that new regulations to increase the number of weeks available under the Canadian Recovery Benefit (CRB) from 26 to 38 weeks (an increase of 12 weeks) came into effect.

By increasing the number of weeks of benefits available through EI and the CRB, the Government of Canada is continuing to support workers through the next phase of the post-pandemic recovery.

The CRB is effective from September 27, 2020 to September 25, 2021. It provides a benefit amount of $500 per week (available in 2-week periods) for up to 38 weeks for those who are not eligible for EI and are not employed or self-employed due to COVID-19, or have had their employment/self-employment income reduced by at least 50% due to COVID-19.

The Canada Recovery Benefit is available to residents in Canada who:

Workers must apply after every 2-week period for which they are seeking income support and attest that they continue to meet the requirements. This benefit is taxable.

Applicants are required to seek and accept work, when it is reasonable for them to do so.

Applicants who receive the CRB and have an annual net income greater than $38,000 will be required to repay some or all of the benefit through the tax filing process.

Applications as of March 28, 2021

As of March 28, 2021, there were 1.83M unique applicants for the CRB and a total of $13.38B in benefits have been paid.

Prepared by

Name: Caroline Cantin

Title: Senior Policy Strategist

Key contact

Name: George Rae

Title: Director

Phone number: 819-661-0530

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in SADMO / COO: April 7, 2021

6. EI – Canada Recovery Sickness Benefit

Context

What income supports are available to workers who are unable to work because they are sick or need to self-isolate due to COVID-19?

Suggested Response

If pressed on why take-up is low compared to original estimates…

Background

On October 2, 2020, the Government announced the introduction of 3 temporary recovery benefits to support Canadians who are unable to work due to COVID-19.

On March 18, the Government of Canada announced that new regulations to increase the number of weeks available under the Canada Recovery Sickness Benefit (CRSB) from 2 to 4 weeks came into effect.

The CRSB provides $500 per week for up to 4 weeks between September 27, 2020 and September 25, 2021 to persons who have been unable to work a minimum of 50% of their scheduled work week because they are sick with COVID-19, are advised to self-isolate due to COVID-19, or have underlying conditions, are undergoing treatments or have contracted another illness that will make them more susceptible to COVID-19.

In addition, applicants must be residing in Canada and:

Workers are not eligible if they are in receipt of the Canada Recovery Benefit, the Canada Recovery Sickness Benefit, short-term disability benefits, workers’ compensation benefits, or any EI benefits or Quebec Parental Insurance Plan (QPIP) benefits in respect of the same week.

Workers are not eligible if they have, in respect of the same week, been granted paid leave or have been paid under a plan that provides for payment for the care or support to another person.

The CRSB is delivered by the Canada Revenue Agency and is taxable with taxes deducted at source.

CRSB Low take-up:

International travellers

On March 17, Bill C-24 added a new eligibility condition so that those who travel internationally and are required to quarantine or isolate under any order made under the Quarantine Act upon their return to Canada will not be eligible to receive the Canada Recovery Sickness Benefit (CRSB), the Canada Recovery Caregiving Benefit (CRCB) or the Canada Recovery Benefit (CRB) during the period of their quarantine or isolation.

Exemptions are provided for those travelling to receive necessary medical treatment or to accompany someone who is travelling to receive necessary medical treatment and requires assistance. In addition, an exemption is provided to travellers who need to isolate but would otherwise have been exempt from quarantine.

These changes are retroactive to October 2, 2020.

Applications as of March 28, 2021

As of March 28, 2021, the CRSB has helped over 447,750 workers, for over $391 million. Over 782,860 applications have been approved.

Prepared by

Name: Ian Coté

Title: Senior Policy Analyst

Key contact

Name: Benoit Cadieux

Title: Director, EI Special Benefits

Phone number: 613-979-0432

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in ADMO: April 13, 2021

7. Canada Recovery Caregiving Benefit (CRCB)

Context

What income supports are available to workers who are unable to work because they have to care for a child or family member unable to attend school, day programs, or another facility?

Suggested Response

Background

On October 2, 2020, the Government announced the introduction of 3 temporary recovery benefits to support Canadians who are unable to work due to COVID-19.

On March 18, the Government of Canada announced that new regulations to increase the number of weeks available under the Canada Recovery Caregiving Benefit (CRCB) came into effect. This means that the number of weeks for the CRCB has increased from 26 to 38 weeks (an increase of 12 weeks).

The CRCB provides $500 per week for up to 38 weeks between September 27, 2020 and September 25, 2021 to persons who have been unable to work a minimum of 50% of their scheduled work week because they had to care for a child under the age of 12 or another family member who requires supervised care because:

In addition, applicants must be residing in Canada and:

Workers are not eligible if they are in receipt of the Canada Recovery Benefit, the Canada Recovery Sickness Benefit, short-term disability benefits, workers’ compensation benefits, or any EI benefits or Quebec Parental Insurance Plan (QPIP) benefits in respect of the same week.

Workers are not eligible if they have, in respect of the same week, been granted paid leave or have been paid under a plan that provides for payment for the care or support to another person.

A maximum of 38 weeks is available per household. Only one individual per household may apply for the CRCB at any time.

The CRCB is delivered by the Canada Revenue Agency and is taxable with taxes deducted at source.

Applications as of March 28, 2021

As of March 28, 2021, the CRCB has helped over 361,790 workers, for over $1.86 billion. Over 3.7 million applications have been approved.

Prepared by

Name: Sarah Rutherford

Title: Policy Analyst

Key contact

Name: Benoit Cadieux

Title: Director, EI Special Benefits

Phone number: 613-979-0432

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in SADMO / COO:

8. EI – Loss of a child

Context

How does the Government of Canada support parents who have lost an infant child?

Suggested response

Background

Motion (M-110) was introduced in 2016 by Mr. Richards (Banff-Airdrie). The motion instructed the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) to study the impacts on parents who have lost a child. In its report tabled February 7, 2019, HUMA made 7 recommendations including: better client services, providing better information on available supports, adding more job-protected leaves under the Canada Labour Code, improving financial supports, and conducting further policy analysis.

The Government’s response highlighted the efforts underway to provide citizen-centric service to Canadians and current supports such as paid bereavement leave under the Canada Labour Code for federally regulated private sector employees and Employment Insurance sickness benefits available to all eligible Canadians to use during the grieving process following the loss of a child.

In 2017 and 2018, the Government modernized Part III of the Canada Labour Code including:

A number of other protections currently exist that are in line with existing EI benefits:

EI parental benefits are intended to support parents in balancing the demands of work and family by providing the flexibility they need to stay home and care for their newborn or adopted children.

Parental benefits cease to be payable in the tragic event that the child passes away. Benefits end in the week of the death.

EI maternity benefits support a birth mother’s physical and emotional recovery for up to 15 weeks surrounding childbirth. These benefits continue to be payable in the tragic event that the child passes away because they are for the mother’s recovery from pregnancy and childbirth.

Grieving parents may be eligible to receive up to 15 weeks of EI sickness benefits should they be unable to work. The sickness benefit provides income support to claimants who are unable to work due to illness, injury or quarantine, including incapacity due to emotional or psychological distress.

Prepared by

Name: Ian Coté

Title: Senior Policy Analyst

Key contact

Name: Benoit Cadieux

Title: Director, EI Special Benefits

Phone number: 613-979-0432

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in SADMO / COO: April 7, 2021

9. EI - PBO costing report

Context

How do Government of Canada’s cost estimates for extending the maximum number of weeks of income support available through Employment Insurance and the Canada Recovery Benefits compare with the cost estimates published by the PBO?

Suggested response

Background

The Canada Emergency Response Benefit (CERB) eligibility period expired on September 26, 2020. As part of Canada’s COVID-19 Economic Response Plan, the Government introduced temporary changes to the Employment Insurance program, effective September 27, 2020, to facilitate access to EI regular and special benefits. These measures result in a one-time EI eligibility requirement of as little as 120 insurable hours across Canada, with a minimum regular benefit rate of $500 per week.

The Government also established a suite of 3 new benefits, effective September 27, 2020, to provide income support to Canadians: the Canada Recovery Benefit, the Canada Recovery Sickness Benefit and the Canada Recovery Caregiving Benefit to support Canadians unable to work due to COVID-19

On March 31, 2021, the Office of the Parliamentary Budget Officer released a report providing their estimated costs for increasing the number of EI regular weeks of benefits to 50 weeks. Their estimate of $4.3 billion was lower than ESDC’s estimate of $5.4 billion.

These variations are due to different data sources and a more optimistic labour market outlook used by the PBO.

PBO estimates that 535,000 claimants would benefit from the extension of EI benefits (based on data from Monitoring and Assessment reports), compared to 676,000 claimants estimated by ESDC (based on current program administrative data). This difference in the take-up rate explains why the PBO estimates are lower than ESDC’s, as the other factors in the cost estimates (for example average benefit rate, average duration) are comparable.

On March 18, 2021, the Office of the Parliamentary Budget Officer released 3 reports providing their estimated costs for increasing the number of weeks for the Canada Recovery Benefit and Canada Recovery Caregiving Benefit to 38 weeks and the Canada Recovery Sickness Benefit from 2 weeks to 4.

For the recovery benefits, their estimate was slightly lower at $6.3 billion compared to ESDC’s estimate at $6.4 billion (see details below), mainly due to differences in the estimated take up rate of beneficiaries.

Table 1: For reference
Extended Measures ESDC cost estimates PBO cost estimates
EI (to 50 weeks) $5.4 billion $4.3 billion
Recovery Benefits $6.4 billion $6.3 billion
CRB (to 38 weeks) $5.6 billion $5.6 billion
CRCB (to 38 weeks) $540 million $498 million
CRSB (to 4 weeks) $273 million $256 million

Prepared by

Name: Jodie MacDonald

Title: Senior Policy Analyst

No phone number:

Key contact

Name: Sylvain Noel

Title: Acting Director, Employment Insurance Policy

Phone number: 819-654-6179

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in ADMO: April 13, 2021

10. EI – Victims of identity theft

Recently, some Canadians have reported that their EI benefits were negatively impacted by identity theft.

Over the past few years, there have been some high profile data breaches of personal information in Canadian enterprises as well as ongoing fraud scams that put Canadians at greater risk of identity theft.

Suggested response

Background

Over the past few years, there have been some high profile data breaches of personal information and ongoing fraud scams that put Canadians at greater risk of identity theft.

We know that fraudsters can use stolen identities to apply fraudulently to our benefit programs. We use data analytics and intelligence tools to disrupt this type of fraud. Measures are also in place to support clients on a priority basis when their benefits have been impacted.

Claimants must contact Service Canada and provide additional information to be put back into pay. We work closely with claimants to resolve those issues as quickly as possible.

To protect the integrity of our processes we are not able to provide detailed information at this time.

Prepared by

Name: Kathleen Walford

Title: Director General

Integrity Operations

Phone number: 819-654-5707

Key contact

Name: Kathleen Walford

Title: Director General

Integrity Operations

Phone number: 819-654-5707

Approved by

Name:

Title:

Phone Number:

Date

Date approved in SADMO / COO:

2021/04/08

11. EI Boundaries / Economic zones

Employment Insurance (EI) Boundary Review

Context

What is the Boundary Review process?

Suggested response

Background

The EI program divides the country into 62 EI economic regions. The unemployment rate specific to each EI economic region is used to determine how many hours claimants need to work to qualify for benefits, duration of benefits and weekly benefit rate. The purpose of the EI economic regions is to ensure that people living in areas with similar labour market conditions are treated the same in terms of eligibility, benefit rate and length of benefit entitlement. The EI economic regions are a fundamental component of the EI program, enabling it to adjust automatically to changes in economic conditions that affect local labour markets.

The boundaries for EI economic regions are reviewed at least once every 5 years. The EI Commission conducts these reviews to determine whether it is appropriate to make changes to those boundaries. The EI regional boundary review is a multi-step process that requires extensive analysis of labour market and geographic data.

In October 2018, the EI Commission launched a new boundary review and is targeting completion by spring/summer 2021. Based on this assessment, the Government will determine whether the current EI economic regions should be modified to better reflect regional labour market characteristics. The last time changes were made as a result of a boundary review was in 2000.

Prepared by

Name: Caroline Cantin

Title: Manager

No phone number: 819-319-0743

Key contact

Name: George Rae

Title: Director

Phone number: 819-661-0530

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in SADMO / COO: April 7, 2021

12. Migrant workers access to EI

Context

Can migrant workers in Canada access EI benefits if they lose their employment?

Suggested response

Background

All workers in insurable employment in Canada, including foreign workers pay Employment Insurance (EI) premiums regardless of the industry in which they are employed and irrespective of whether they have an expectation of receiving benefits. Virtually all employment in Canada, where there is an employer-employee relationship, is insurable under EI.

All contributors, including Seasonal Agricultural Workers and other foreign workers, are entitled to EI benefits, provided that they meet qualifying and entitlement conditions applicable to all insured workers in Canada. There are no special eligibility rules that specifically apply to only TFWs.

For foreign workers, this usually means that they must have a valid work permit issued by Immigration, Refugees and Citizenship Canada (IRCC) and a valid social insurance number (SIN) issued by Service Canada that allows them to legally work in Canada in order to prove availability for work and be eligible for EI regular benefits.

However, claimants do not have to prove availability for work to receive maternity, parental and compassionate care benefits. Claimants who meet eligibility criteria for these benefits may receive them while they are outside Canada, as long as their SIN remains valid. If a claimant leaves Canada while receiving EI benefits, they must meet one of the conditions to continue to be eligible. For example, under EI Regulation 55, there is a requirement that claimants outside of Canada have a valid SIN.

TFWs receive an employer-specific work permit which only allows them to work for 1 specific employer. However, this alone does not preclude a worker from proving their availability for work as they are legally allowed to remain in Canada until their current work permit expires and therefore may be able to secure alternate employment and a new work permit in the interim.

In addition, a claimant who does not currently possess a work permit is not automatically considered unavailable for work.

Foreign workers who are allowed to remain in Canada after their work permit expires, and have applied to extend the work permit before it expired, may receive benefits pending receipt of the new work permit – this worker has “implied status” from IRCC.

Consequently, the lack of a work permit is not the only factor to be considered when determining availability. The Commission must take into account all factors normally considered when determining a claimant’s availability.

Workers in the Seasonal Agricultural Workers Program are issued a work permit that is valid for a specific period of time (usually for a maximum period of 8 months, between January 1 and December 15) which normally corresponds with the agricultural season.

While these work permits generally cannot be renewed or extended, in December 2020, IRCC did provide temporary work permits to Seasonal Agricultural Workers who were stranded in Canada due to COVID-19 related travel restrictions.

Prepared by

Name: Joel Reimer

Title: Senior Advisor, Employment Insurance Policy

Key contact

Name: Catherine Demers

Title: Director General, Employment Insurance Policy

Phone number: 819-654-6849

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in ADMO: April 8, 2021

13. Employment Insurance and workers in seasonal employment

Context

How is the Government of Canada supporting workers in seasonal employment?

Suggested response

Background

The issue of seasonal workers experiencing a gap or “trou noir” is not a new phenomenon.

Trou noir represents the period when some workers in seasonal employment have exhausted their EI benefits but continue to wait to be called back in for their seasonal job and are unable to find other employment. In other words, these claimants do not receive employment income or Employment Insurance benefits during this period.

However, seasonal claimants that exhaust their EI benefits do not necessarily experience an income gap if they immediately return to work after having exhausted their regular EI benefit.

As EI benefits vary from year to year in each region, this can cause disruption for workers whose main jobs are seasonal.

The current pilot project provides up to 5 additional weeks of EI regular benefits to eligible seasonal claimants in 13 targeted EI regions with a higher proportion of seasonal EI claims. The additional 5 weeks of benefits will be available to eligible claimants who start a benefit period between August 5, 2018 and October 30, 2021 and who reside in the following EI regions:

A worker is considered a seasonal claimant if they meet both of the following:

Prepared by

Name: Caroline Cantin

Title: Manager, Employment Insurance Policy

Key contact

Name: Catherine Demers

Title: Director General, Employment Insurance Policy

Phone number: 819-654-6849

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in SADMO / COO: April 7, 2021

14. Repayment of emergency benefits

How is the Government treating Canadians who have to pay back the Canada Emergency Response Benefit (CERB)? Will the self-employed who used gross-income to access the CERB have to repay their benefits?

Suggested response

Background

On April 6, 2020, the Government of Canada launched the Canada Emergency Response Benefit (CERB) to provide temporary income support to workers who stopped working or had their employment or self-employment income reduced for reasons related to COVID-19. Through this benefit, eligible workers who lost their job or were unable to work due to COVID-19 received $500 per week.

Service Canada and the Canada Revenue Agency (CRA) jointly administered the CERB to ensure that Canadian workers received the money they were entitled to as quickly as possible. However, there may be situations in which Canadians received a CERB payment to which they were not eligible, such as:

While there will not be any penalty for workers if they received a payment in error, they may be required to repay the CERB benefits for which they were not eligible and may have already received a letter providing them with further information about the repayment process. To support this process, Canadians are strongly encouraged to file their 2020 tax returns by the filing deadline.

In December 2020, media reports raised questions on whether the $5,000 in income required to be eligible for CERB is net or gross for the purposes of self-employed individuals. The policy intent was that self-employed workers should qualify in the basis of their net pre-tax income, to put them on similar footing with employed Canadians.

The CRA website for CERB eligibility stated that small business owners could receive income from their business in different ways, including as salary, business income or dividends. It also stated that owners who rely on business income should consider their net pre-tax income (gross income less expenses). However, in the early weeks after CERB was launched, some individuals were mistakenly advised that they could qualify on the basis of their gross income.

On February 9, 2021, the Government announced that it is allowing self-employed individuals who applied for the CERB through the CRA or Service Canada, and whose net self-employment income was less than $5,000 to keep their CERB payments, provided they meet all other eligibility requirements.

This approach provides a targeted resolution specifically for self-employed individuals who applied in good faith and received benefits based on unclear eligibility information provided by the Government.

Prepared by

Name: Marina Makris

Title: Policy Analyst

Key contact

Name: Steven Coté

Title: A/Executive Director

Phone number: 819-576-2722

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in ADMO: April 9, 2021

15. Benefit Delivery Modernization (including system modernization)

Context

Employment Insurance (EI) is migrating from the Legacy system to the Benefits Delivery Modernization (BDM) platform.

Suggested response

Background

ESDC is the largest federal service delivery organization in Canada, providing $136B in direct benefits to Canadians in 2019 to 2020 through EI, CPP, and OAS. These benefits are essential to maintain a safety net for economically vulnerable Canadians, including low-income seniors, people with disabilities, and workers who have lost their jobs through no fault of their own.

As a result of a succession of Budget investments, ESDC has made progress in addressing technical debt on EI, CPP and OAS and ensuring benefit payments continue to flow. The BDM Programme will ensure that ESDC can continue to deliver our mandate in the future.

The BDM Programme is a modern service delivery model that will standardize technology, process and operational models across EI, OAS and CPP. Common benefits processing across all 3 statutory benefits programs will improve processing speed and accuracy of payments, enhance program integrity, centralize program data and decrease operational costs. Regardless of channel, region or function, the enhanced functionalities will enable the Department to provide client-centric services that meet client needs and rising service expectations.

The modernized platform is being implemented incrementally in 4 phases, over the course of 10 years. It is the largest change initiative ever undertaken by the Government of Canada.

The BDM Programme goals are service excellence, policy agility and transformed organization.

Key contact

Name: Ree Schwartz

Title: Manager, BDM Strategic Communications

Phone number: (613) 406-8763

Approved by

Name: Susan Ingram

Title: DG, Enterprise Major Projects Execution

Phone number: (819) 654-6163

Date

Date approved in COOO: April 9, 2021

16. EI independent review and support for self-employed workers

Context

A number of stakeholders have called for the Government to undertake a broader review of the EI program, in order to ensure that the program remains relevant and responsive. The commitment in the 2020 Speech from the Throne to modernize EI for the 21st century, and expand it to cover the self-employed and gig workers has heightened expectations for a broad review of the program.

Suggested response

We will also engage with other key groups such as the self-employed to inform proposed enhancements.

Background

The EI program is reviewed on a regular basis through a number of mechanisms. The impact and effectiveness of the EI system is reviewed annually in the Monitoring Assessment Report (MAR), which is a requirement under the Employment Insurance Act (EI Act). An EI boundary review is required to be conducted every 5 years under the Employment Insurance Regulations. The program is also reviewed through Departmental evaluations, the EI Coverage Survey and other published evaluations. The results of these surveys and evaluations are available to stakeholders and the public.

The 2020 Speech from the Throne committed that “the EI system will become the sole delivery mechanism for employment benefits, including for Canadians who did not qualify for EI before the pandemic. Canada needs an EI system for the 21st century, including for the self-employed and those in the gig economy.” Over the coming months, this work is expected to involve bringing forward and beginning to implement a plan to modernize the EI program, including the launch of targeted consultations on possible new income supports for the self-employed and possible enhanced maternity and parental benefits (including adoptive parents), with the flexibility to expand the scope of consultations if needed.

As the EI program is tripartite in nature, it is important that the Government consult with both employers and employees on any proposed enhancements to EI, including for key groups such as the self-employed. The EI Commissioners for Employers and Workers sent a letter to request a comprehensive review of the program in fall 2020.

Prepared by

Name: A. Mona Nandy

Title: Executive Director, Employment Insurance Policy

Phone number: 613-291-5223

Key contact

Name: Catherine Demers

Title: Director General, Employment Insurance Policy

Phone number: 613-697-7917

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in ADMO: April 7, 2021

17. Basic income

Issue

Growing interest in the idea of a basic income in Canada

Context

While the term “basic income” (BI) has multiple meanings, it usually refers to programming that provides recipients with guaranteed incomes sufficient to meet basic needs, with few conditions and no requirements to have or seek employment. While benefits could be universal with tax-back provisions for higher-income recipients, Canadian experts generally anticipate income testing so that payments are only made to people with incomes below a specified threshold. A partial basic income would feature payments that cover some but not all essential needs and would supplement other income sources.

In the context of concerns about poverty and the changing nature of work, public interest in a basic income has been increasing, and some experts and stakeholders have advocated research such as pilot projects or other steps towards implementation.

The COVID-19 pandemic has highlighted gaps in the social safety net and fuelled interest in, and support for, basic income.

Suggested response

Responsive – Is the federal government planning to work with provinces or territories, such as P.E.I., to support a basic income pilot?

Background

The debate over basic income

The economic impact of the COVID-19 pandemic has led to increased calls from a wide range of stakeholders and experts to introduce a basic income, with the goals of reducing poverty and inequality, addressing the changing nature of work (including automation and increases in precarious employment), and improving population health and well-being. Some stakeholders also say economic benefits could result from a basic income, including increases to employment and the Gross Domestic Product.

In April 2020, 50 senators signed a letter that advocated building on the Canada Emergency Response Benefit (CERB) to establish a “crisis minimum income” for the short-term and then pursue further social and economic reforms.

In a May 2020 brief to the Senate’s Standing Committee on Social Affairs, Science and Technology, Basic Income Canada Network said that in the context of the COVID-19 pandemic, “a basic income provides a foundation of stability, security, a measure of confidence and a level of trust in government that will make good outcomes possible.”

In February 2021, MP Julie Dzerowicz introduced Bill C-273, a Private Member’s Bill that would establish a national strategy for a guaranteed basic income. This bill, and the pro-basic income Motion M-46, are both receiving significant attention from basic income advocates. While the bill could come to second reading as early as this Spring, it is more likely to proceed in the fall.

Critics of basic income express concerns about the anticipated costs and disincentives to work, and many oppose payments without requirements to work or seek employment. As well, some critics suggest that, rather than a basic income, governments should increase expenditures on social services such as Pharmacare, dental coverage, childcare, and housing.

Existing federal programming

Provinces and territories have significant authority in the area of income support. Previous communication from ESDC has indicated that the Government of Canada recognizes the importance of working with provinces and territories to find solutions to common challenges, while stating that it is up to the provincial and territorial governments to make decisions around the design of social assistance systems and policies in their own jurisdictions.

Some Government of Canada initiatives have many of the features of a partial basic income for specific groups. This includes the Canada Child Benefit (CCB), which provides income support to families raising children. For Canadian seniors, the Old Age Security (OAS) program plays a significant role in providing income security. OAS pensioners who receive little or no income, other than the OAS pension, are eligible for additional assistance through the Guaranteed Income Supplement (GIS).

The government has made significant efforts to address the short-term needs of Canadians facing hardship as a result of the COVID-19 outbreak. These initiatives include the Canada Emergency Response Benefit (CERB) the Canada Recovery Benefits to help replace lost incomes, and changes to make Employment Insurance more flexible and generous. In addition, many Canadians have benefitted from one-time enhancements to the Goods and Services Tax/Harmonized Sales Tax Credit, Canada Child Benefit, and Old Age Security/Guaranteed Income Supplement, as well as one-time payments for persons with disabilities.

Ontario pilot project

In April 2017, the Ontario Government launched a 3-year basic income pilot project. The 4,000 participants were low-income people aged 18 to 64 in selected communities. Payments were based on 75% of Statistics Canada’s Low-Income Measure (LIM). A single individual received $16,989 annually, less 50% of earned income, while couples received $24,027 less 50% of any combined earned income. People with disabilities received an additional $500 per month. Participants were also eligible to receive certain benefits including the CCB.

The Ontario Basic Income pilot tested a potential new approach to income support that would replace social assistance, and possibly other programming, if it were fully implemented.

The Ontario Minister of Community and Social Services announced in July 2018 that the basic income pilot would be cancelled. Payments to participants continued only until March 2019.

On March 5, 2019, Basic Income Canada Network reported on a non-random survey of 424 participants in the Ontario pilot. Key findings include:

In March 2020, economist Wayne Lewchuk of McMaster University and colleagues released a separate report, based on surveys and interviews with 217 former pilot participants in the Hamilton area. Findings of the study include:

Other provinces and territories

Ernie Hudson, P.E.I.’s former Minister of Social Development and Housing, has asked the federal government “to consider additional partnership, such as funding support” for a BI pilot project. The P.E.I. government also plans a “secure income” pilot with means-tested benefits for individuals with severe barriers to entering the workforce (for example, it is narrower in scope than a basic income proposal).

The province’s Special Committee on Poverty in P.E.I., following public hearings, issued a report in November 2020. The committee recommended that the provincial government pursue a full basic income program and seek to begin negotiations with the federal government to support this goal; if sufficient federal support is not forthcoming, it recommended as an alternative that the P.E.I government pursue a basic income pilot. Minister Hudson discussed the topic with Minister Ahmed Hussen in March 2020 and January 2021, and has requested federal financial support for a basic income pilot.

In March 2021, P.E.I. Premier Dennis King raised the topic of basic income with the Prime Minister. [One sentence has been redacted].

British Columbia’s government examined the concept of basic income in the context of its poverty reduction efforts. In January 2021, an expert panel issued a report and set of research papers. The panel recommended that B.C. not introduce a basic income or pursue a pilot project. Instead, it proposed 65 recommendations. These include recommendations for a targeted income support program for people with disabilities; changes to income assistance programming to reduce the “welfare wall”; extended health care benefits for all lower-income British Columbians; measures to support participation in the labour force; and improved assistance for low-income renters.

In November 2017, a committee established by the then-Government of Quebec recommended that the province establish a guaranteed minimum income.

In May 2018, that government introduced a targeted income support program for persons with a severely limited capacity for employment.

In November 2020, the Newfoundland and Labrador legislature passed a motion to establish an all-party committee to examine the concept of basic income.

Yukon and Nunavut have taken steps towards completing research studies on basic income.

Cost of a national basic income

In 2018, the Parliamentary Budget Office (PBO) estimated the gross annual cost of a basic income modelled on Ontario’s pilot project and implemented across Canada: $76B for the 2018 to 2019 fiscal year. The PBO also calculated that $32B of existing federal support could be eliminated, leaving a net cost of $44B. As well, economist Evelyn Forget builds on the PBO’s estimate and calculates that if provincial income assistance expenditures could be reallocated and directed towards basic income expenses, the annual cost of a BI program could be cut to $23B. In any case, to offset costs, a basic income would almost certainly require modification or elimination of some programs and/or taxation changes.

On July 7, 2020, the PBO issued a separate report, which estimated the gross cost of a BI program for 6 months, starting in October 2020, at $47.5B if designed following the model of the Ontario pilot. The PBO also showed that lower phase-out rates, with more generous treatment of earned income to reduce disincentives to work, would lead to substantially higher gross costs (potentially as high as $98.1B for 6 months). The projected cost at this time is affected by the high rates of unemployment due to the COVID-19 pandemic.

UBI Works has suggested several actions to help pay for a basic income, including introducing a land value levy, increasing taxes on businesses or higher-income earners, implementing a “microtax on financial transactions,” and raising the Goods and Services Tax rate.

Basic Income Canada Network (BICN) report

On January 23, 2020, BICN issued a report advocating the introduction of a basic income in Canada. The report proposed 3 options featuring benefits of $22,000 per year for individuals ($31,113 for couples in 2 cases), either targeted to Canadians with low incomes or universal with a significant portion of costs recovered through the tax system.

BICN’s report explains that each of the options could be paid for mainly through changes to the tax system, along with modifications to or elimination of certain existing federal and PT programs.

UBI Works report

In December 2020, UBI Works, an organization that brings together businesspeople who advocate in favour of a basic income, released a report on the economic impacts of basic income in Canada. The report concluded that as well as dramatically reducing poverty, a basic income of $2000 per month for individuals (and a higher amount for couples) would have economic benefits, including anticipated increases in employment and the Gross Domestic Product.

Examples of basic income pilots and measures in other countries

Basic income pilots and experiments are in various stages in a number of jurisdictions including the Netherlands, Germany, and American municipalities such as Stockton, California, and Hudson, New York.

In February 2019, the Government of Finland issued the preliminary evaluation of a 2-year pilot project with 2,000 unemployed participants receiving monthly payments of €560 (about $840 Canadian). The evaluation showed that these payments contributed to the health and happiness of the beneficiaries; however, there was no positive or negative impact on the likelihood of recipients participating in the labour force. The final evaluation, issued in May 2020, showed largely consistent results; recipients had slightly higher workforce participation than members of the control group.

Overall, other research and pilots, including a study in Manitoba in 1975to 1978, indicate that a well-designed and appropriately funded basic income would address poverty, avoid undue effects on work incentives, and promote health and well-being.

Since 1982, Alaska has paid a partial basic income for all residents, usually about $1000 to $2000 U.S. per year. The measure has helped to alleviate poverty and appears to have contributed to an increase in part-time work.

Spain has recently taken steps towards implementing a kind of partial basic income for lower-income households, with benefits for eligible individuals of €462 (about $700 Canadian), and higher payments to households. Spanish authorities started to accept applications in June 2020.

Prepared by

Name: Christopher Page

Title: Senior Policy Analyst

Key contact

Name: Poppy Vineberg

Title: Acting Senior Director

Phone number: 613-324-2433

Approved by

Name: Catherine Adam

Title: Senior Assistant Deputy Minister, SSPB

Phone number: 819-654-2992

Date

Date approved in SADMO: April 6, 2021

18. Employment Insurance Processing

Issue

Employment Insurance Processing and Call Centres in the era of COVID-19

Suggested response

Background

Employment and Social Development Canada (ESDC) is the largest federal service delivery organization in Canada, delivering almost $136B in benefits in 2019 to 2020 to support Canadians at all stages of their lives.

The Department’s service standards measure the efficiency, effectiveness and accountability of the delivery of its programs and services. These are fundamental in assessing how the Department carries out its work, and are integral to providing the best service to clients. These service standards are continuously reviewed and the Department makes adjustments to its administration and processing to improve its performance in the areas of access, timeliness, quality, and cost.

EI processing

Speed of payment

Service Canada’s key client service performance indicator for EI claims processing is Speed of Payment (SOP). This measures the percentage of initial and renewal claims for which payment (or non-payment notification) is given to claimants within 28 days of filing their application for benefits. The national SOP target is 80% on a fiscal year average, and in 2020 to 2021 SOP was met 89% of the time.

Service Canada also measures the percentage of requests for reconsideration completed within 30 days of receipt (with a target of 80%). In fiscal year 2020 to 2021, requests for reconsideration were completed within 30 days 89% of the time.

Canada Emergency Response Benefits

As the COVID-19 pandemic began, the Government provided direct and rapid income support to millions of Canadians impacted by closures and public health restrictions that made it difficult or impossible for them to work.

Due to the nature of the crisis, quick and decisive action was required to provide income support to Canadians through emergency benefits such as the CERB. As such, the EI program experienced a significant change in landscape in March 2020:

On April 1, 2020 Service Canada introduced changes that dramatically reduced the business rules related to the establishment of new CERB claims and as a result was able to fully automate the vast majority of applications, allowing clients to apply online, implementing a flat rate, and processing payments to everyone eligible in a timely manner. The Department made other important changes to EI to respond to the socio-economic conditions impacted by the pandemic, such as waiving the waiting period to improve timeliness of access to these income supports.

The more fundamental work relates to what was done subsequent to this initial set of changes. Within this context, the Department established a policy simplification task team that worked on simplifying the myriad of rules that govern the EI program in such a way as to:

The ideal outcome was to establish new claims for clients in a timely fashion, based on a simplified set of policy parameters that, where appropriate and feasible, are aligned to the spirit of the existing EI legislation.

On September 27, 2020, the Government of Canada announced a transition from the CERB to a simplified EI program and new income support benefits to better support all Canadians. The department will continue to work with the Canada Revenue Agency to deliver temporary recovery benefits to Canadians who are affected by the pandemic. These benefits include:

Improvements

The Government has committed to making service delivery improvements to EI. In addition, as the Department modernizes its processing operations, it will be focusing on the following areas for improvement:

EI Call Centres

As of March 9, 2020, the EI Call Centres migrated to a new call centre platform, which increased the queue port capacity to 2,632 callers in queue, this was further increased to 4,432 as of March 19, 2020, and subsequently to 5,500 on June 29, 2020, to ensure virtually all callers would have the ability to wait in queue to speak to an agent. A final increase of up to 6,500 callers in queue was implemented on March 17, 2021 to align to the increase EI agent capacity.

A massive onboarding strategy was developed to increase capacity from 1,100 to 3,000 agents by the end of 2020 to 2021 to reduce wait times while supporting a virtually 100% accessibility environment.

Further, EI Call Centres Interactive Voice Response (IVR) ports were quadrupled and queue ports were doubled.

This additional capacity has allowed Call Centres to improve accessibility, reduce wait times, and improve Service Level results.

From April 1, 2020 to March 31, 2021, the EI Specialized Call Centres:

Key facts

Prepared by

Name: Jonathan Larocque

Title: Director, Strategic Directions Directorate

Key contact

Name: Nisa Tummon

Title: Director General, Strategic Directions Directorate

Phone number: (873) 396-1062

Approved by

Name: Cliff Groen

Title: Senior Assistant Deputy Minister, Benefits and Integrated Services Branch

Phone number: (819) 654-6944

Date

Date approved in SADMO / COO: April 9, 2021

April 8, 2021

19. EI ERB hot sheet - Transition from EI-ERB (or CERB) to EI

Issue

On September 28, 2020, ESDC transitioned from CERB, which was set up to provide rapid support to Canadians affected by the COVID-19 pandemic, to the EI program.

Key facts

Points to raise

20. EI benefit/Unemployed ratio

Context

What are the latest figures on eligibility and access to the EI program?

Suggested response

Background

Statistics Canada’s Employment Insurance Coverage Survey (EICS) shows that among the unemployed who had paid EI premiums in the previous 52 weeks and had a valid job separation, 82.4% were eligible to receive EI regular benefits in 2019. This rate of eligibility represents a decrease relative to 2018 (87.4%).

In the past there has been public debate on EI access which highlighted differences in reported outcomes between the EI eligibility rate (82.4% in 2019) and the beneficiary-to-unemployed ratio (39.6% in 2019) used in the EI Commission’s EI Monitoring and Assessment Report.

The EI eligibility rate reported is designed to profile the eligibility of unemployed workers who have both paid EI premiums and have a valid reason for job separation. The other measure, the B/U ratio, includes those who have never worked and, therefore, have never paid into EI; those who have not worked in the past year; those who quit their job without just cause; self-employed individuals; and unpaid family workers.

A CD Howe Institute reportFootnote 2 concluded that the EICS eligibility rate was a good measure of the EI program’s access, coverage and effectiveness compared to other benchmarks that are used in public reporting, which often include segments of the unemployed population which the EI program and its associated policies are not designed to provide coverage to under current eligibility rules.

Results for EI eligibility rates can vary based on factors related to changes and fluctuations in the composition of the labour market and the unemployed population specifically ( for example increases in the number of unemployed former full-time workers, the number of self-employed among the unemployed population, the share of those with or without valid job separations for access to EI benefits, an so on) from year to year.

Prepared by

Name: Stéphanie McMullen

Title: Manager, Employment Insurance Policy

Key contact

Name: Catherine Demers

Title: Director General, Employment Insurance Policy

Phone number: 819-654-6849

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in ADMO: April 9, 2021

21. Recovery benefits hot sheet supporting Canadians through the COVID-19 pandemic (2021-04-07)

Issue

What is the Government doing now to support Canadians whose employment has been impacted by renewed public health measures in response to COVID-19?

Key facts

  1. Enhancements to the Employment Insurance Program:
    • as part of Canada’s COVID-19 Economic Response Plan, the Government transitioned from the Canada Emergency Response Benefit (CERB) to a simplified Employment Insurance (EI) program, effective September 27, 2020, to provide income support to eligible workers who remain unable to work
    • recognizing that many workers impacted by the COVID-19 pandemic will have lost their jobs or are working reduced hours, a set of temporary measures have been introduced to facilitate access to EI benefits. These temporary measures include:
      • a minimum unemployment rate of 13.1% applies to all regions across Canada since August 9, 2020 and until September 11, 2021
      • allowing workers with 120 insurable hours to qualify for benefits because of a one-time credit of:
        • 300 insured hours if applying for regular benefits, and
        • 480 insured hours if applying for sickness, maternity, parental or caregiving benefits, and
      • a minimum weekly benefit of $500 per before taxes, or $300 before taxes for extended parental benefits
    • the Government has also temporarily waived the need to submit a medical certificate for EI claimants who establish a new claim for EI Sickness benefits, and implemented temporary measures to support self-employed fish harvesters who rely on EI fishing benefits during the off season
    • to support small businesses and workers, the Government of Canada has also frozen the EI premium rate for 2 years at the current 2020 rate of $1.58 per $100 of insurable earnings
    • in addition, the Government of Canada has confirmed that it will be crediting the EI Operating Account for the costs related to the Canada Emergency Response Benefit
    • in early January 2021, Canada experienced an increase in COVID-19 infections, which resulted in additional public health measures and increased financial pressure on workers. In response, the Government of Canada waived the waiting period for all new EI claims established from January 31, 2021 until September 25, 2021. This enables eligible workers to be paid for the first week of unemployment
    • on March 18, 2021, the Government temporarily increased the maximum number of weeks available for workers claiming EI regular benefits. The change allows eligible claimants to receive a maximum of 50 weeks for claims made between September 27, 2020, and September 25, 2021
  2. Recovery Benefits:
    • on October 2nd, the Government introduced 3 temporary Recovery Benefits to provide income support to those Canadian workers who are not eligible for EI and those who require tailored support when their employment is affected by COVID-19: the Canada Recovery Benefit (CRB), the Canada Recovery Sickness Benefit (CRSB), and the Canada Recovery Caregiving Benefit (CRCB). These benefits are effective from September 27, 2020 until September 25, 2021
    • on March 18, the Government of Canada announced that new regulations to increase the number of weeks available under the Recovery Benefits came into effect. This includes an increase in the number of weeks available under the CRB and the CRCB by 12 weeks, extending the maximum duration of the benefits from 26 weeks to 38 weeks. It also includes an increase in the number of weeks available under the CRSB from 2 weeks to 4 weeks
      1. Canada Recovery Benefit:
        • the CRB provides a benefit amount of $500 per week (available in 2-week periods) for up to 38 weeks for those who are not eligible for EI and are not employed or self-employed due to COVID-19, or have had their employment/self-employment income reduced by at least 50% due to COVID-19
      2. Canada Recovery Sickness Benefit:
        • the CRSB provides $500 per week, for up to 4 weeks, to persons who have been unable to work a minimum of 50% of their scheduled work week because they are sick with COVID-19, are advised to self-isolate due to COVID-19, or have underlying conditions, are undergoing treatments or have contracted another illness that will make them more susceptible to COVID-19
      3. Canada Recovery Caregiving Benefit:
        • the CRCB provides $500 per week for up to 38 weeks to persons who have been unable to work a minimum of 50% of their scheduled work week because they had to care for a child under the age of 12 or another family member who requires supervised care
  3. Canada Emergency Response Benefit Repayment:
    • on April 6, 2020, the Government of Canada launched the Canada Emergency Response Benefit (CERB) to provide temporary income support to workers who stopped working or had their employment or self-employment income reduced for reasons related to COVID-19. Through this benefit, eligible workers who lost their job or were unable to work due to COVID-19 received $500 per week
    • Service Canada and the Canada Revenue Agency (CRA) jointly administered the CERB to ensure that Canadians received the money they were entitled to as quickly as possible. However, there may be situations in which Canadians received a CERB payment to which they were not entitled
    • while there will not be any penalty for Canadians if they received a payment in error, they may be required to repay the CERB benefits for which they are not entitled and will proactively receive a letter providing them with further information about the repayment process. To support this process, Canadians are strongly encouraged to file their 2020 tax returns by the filing deadline
    • on February 9, 2021, the Government announced that it is allowing self-employed individuals who applied for the CERB through the CRA or Service Canada, and whose net self-employment income was less than $5,000 to keep their CERB payments, provided they meet all other eligibility requirements
    • this approach provides a targeted resolution specifically for self-employed individuals who applied in good faith and received benefits based on unclear eligibility information provided by the Government
  4. Take up of recovery measures:
    • as of March 28, 2021, the numbers of unique applicants that have accessed the recovery benefits are:
      • 1.83 M for the Canada Recovery Benefit
      • 361,790 for the Canada Recovery Caregiving Benefit, and
      • 447,750 for the Canada Recovery Sickness Benefit
      • as of March 28, 2021, there were 2,303,720 active EI regular benefit claimants
  5. International travellers:
    • on March 17, Bill C-24 added a new eligibility condition so that those who travel internationally and are required to quarantine or isolate under any order made under the Quarantine Act upon their return to Canada will not be eligible to receive the Canada Recovery Sickness Benefit (CRSB), the Canada Recovery Caregiving Benefit (CRCB) or the Canada Recovery Benefit (CRB) during the period of their quarantine or isolation
    • exemptions are provided for those travelling to receive necessary medical treatment or to accompany someone who is travelling to receive necessary medical treatment and requires assistance. In addition, an exemption is provided to travellers who need to isolate but would otherwise have been exempt from quarantine
    • these changes are retroactive to October 2, 2020

Points to raise

EI enhancements and recovery benefits

CERB repayment

22. Clients having trouble accessing recovery benefits

Context

After 6 months of implementation, why do some clients still have trouble accessing recovery benefits?

Suggested response

Background

As part of Canada’s COVID-19 Economic Response Plan, the Government has transitioned from the Canada Emergency Response Benefit to a simplified Employment Insurance (EI) program, effective September 27, 2020, to provide income support to eligible workers who remain unable to work.

The Government of Canada has also introduced a suite of 3 new benefits to support economic recovery and Canadians who are unable to work due to COVID-19, the Canada Recovery Benefit (CRB), the Canada Recovery Sickness Benefit (CRSB), and the Canada Recovery Caregiving Benefit (CRCB).

These 3 benefits are delivered by the Canada Revenue Agency (CRA).

There is a link between EI and the new recovery benefits. As specified in the Canada Recovery Benefits Act, workers are not eligible for the CRB if they have established or could have established an EI benefits claim with respect to the same period. This rule does not apply for CRSB or CRCB. A claimant who has an “open” EI benefit period may be eligible to receive the CRSB or CRCB if they meet all eligibility criteria; however, claimants must not be paid EI benefits for the period for which they are claiming the recovery benefits.

As a result, a record of activity with EI must be resolved before a client’s eligibility for the new benefits can be determined.

For the CRB, this ensures EI eligible workers remain within the EI program.

For the CRSB and the CRCB, this link ensures clients are not receiving more than one benefit for the same period.

With this in mind, at the launch of the recovery benefits, ESDC and CRA worked together to develop an information data exchange, to ensure that only 1 benefit is paid to Canadians at any given time. This reduces the chance for duplicate payments and overpayments to Canadians.

Service Canada provides the CRA a daily data feed with respect to whether or not a client has an active EI claim with Service Canada. Updates to client accounts can take up to 5 business days, but are often shorter.

A working group has been established to quickly resolve situations where clients have experienced delays to their application for the recovery benefits due to having an open EI benefit period.

Prepared by

Name: Magalie Brochu

Title: Manager, EI Special Benefits (Mat/Par/SE)

Key contact

Name: Benoit Cadieux

Title: Director, EI Special Benefits

Phone number: 613-979-0432

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in ADMO: April 9, 2021

23. Response to release of Auditor General’s report on the Canada Emergency Response Benefit

Issue

What is the Government’s response to the Office of the Auditor General (OAG)’s findings following the release of their audit on the development and delivery of the Canada Emergency Response Benefit (CERB)?

Context

The OAG’s independent report on the development and delivery of the CERB was tabled in Parliament on March 25, 2021. There are 2 recommendations in the report addressed to both the CRA and ESDC. The first relates to finalizing and implementing post-payment verification for the CERB. The second calls for a formal assessment of the delivery of the CERB to apply the findings to the design and delivery of future government emergency response and recovery benefits.

Suggested response

Background

Prepared by

Name: Marina Makris

Title: Policy Analyst

Key contact

Name: Steven Coté

Title: A/ Executive Director

Phone number: 819-654-8775

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in SADMO / COO: April 7, 2021

24. C-265 Speaker’s Ruling

A note on C-265 Speaker’s Ruling will be provided should it be issued before April 15, 2021.

25. C-220 bereavement leave and EI interaction

Context

Private Member’s Bill C-220 was amended at Committee Stage to extend bereavement leave instead of extending compassionate care leave. Why didn’t the Government propose amendments that would provide bereaved employees with additional income support while they are on leave?

Suggested response

Interaction with Employment Insurance

Background

Bill C-220, originally titled An Act to amend the Canada Labour Code (Compassionate Care Leave) was introduced by Conservative Member of Parliament Matt Jeneroux on February 25, 2020. As originally drafted, Bill C-220 would have amended Part III of the Canada Labour Code (Code) to provide employees on compassionate care leave with 1 to 3 additional week(s) of leave following the death of person being cared for – subject to how long they were on leave prior to the death.

Compassionate care leave is an unpaid leave that allows an employee to take up to 28 weeks of leave within a 52-week period to provide care and support to a family member who has a serious medical condition with a significant risk of death within a 26-week period, as attested to in a medical certificate. Eligible employees may also be entitled to receive Employment Insurance compassionate care benefits for up to 26 weeks while they are on leave. If the family member being cared for dies while an employee is on compassionate care leave, the leave and benefits both end on the last day of the week in which the family member died.

During Committee study of the bill on February 25, 2021, amendments were passed so that Bill C-220 does not extend compassionate care leave, and instead:

These amendments ensure that Bill C-220 provides all employees covered under Part III of the Code with more time off if they experience the death of a loved one, not just employees on compassionate care leave.

Part III of the Code sets out the minimum labour standards (for example payment of wages, hours of work, leave provisions) applicable to workplaces in the federally regulated private sector and in most federal Crown corporations. The federal private sector covers about 955,000 employees (or 6% of all Canadian employees) working for 18,500 employers in industries such as banking, telecommunications, broadcasting, inter-provincial and international transportation (including air, rail, maritime, and trucking).

It also includes federal Crown corporations and certain governance and administrative activities on First Nations reserves, but does not include the federal public service, the Canadian Armed Forces, the Royal Canadian Mounted Police, or Parliamentary employees.

Prepared by

Name: Yoana Garcia-Poulin

Title: Policy Analyst

No phone number

Key contact

Name: Sébastien St-Arnaud

Title: Manager

Phone number: 613-410-7572

Approved by

Name: Douglas Wolfe

Title: Senior Director

Phone number: 819-921-1539

Date

Date approved in SADMO / COO: April 8, 2021

26. Extension of Employment Insurance Sickness Benefits

Context

Why extend Employment Insurance (EI) Sickness Benefits to 26 weeks instead of 50 weeks, as proposed in Private Member’s Bill C-265?

Suggested response

Background

The EI sickness benefit provides up to 15 weeks of income replacement for eligible claimants who are unable to work because of illness, injury or quarantine. In 2018 to 2019, It provided $1.8 billion in support to 421,000 claimants. The average duration of sickness benefits was 10 weeks, however 34% of claimants exhausted EI benefits before they were able to return to work.

To qualify for EI special benefits, including sickness benefits, insured claimants normally require 600 insurable hours in the 52-week period preceding their claim. Once all 15 weeks have been used, claimants must work another 600 hours to qualify for more sickness benefits. Self-employed individuals are required to opt in at least one full year prior to claiming EI special benefits and must have earned a minimum amount in self-employment earnings during the previous taxation year. For claims in 2021, self-employed claimants must have earned at least $7,555 in 2020.

The maximum weekly EI benefit rate is $595 per week in 2021.

The EI program supports the delivery of sickness benefits through private sector employers through the Premium Reduction Program (PRP). The PRP offers participating employers a premium rate reduction when offering their employees short-term disability plans that meet or exceed EI requirements when the health plan is the first payer.

Temporary measures have been introduced in response to COVID-19 to facilitate access and make EI benefits (including EI sickness benefits) more generous. These include a minimum $500 weekly benefit rate and a one-time hours credit resulting in a lowered threshold of 120 hours to access EI sickness benefits. In addition, the waiting period and the requirement to submit a medical certificate have been temporarily waived for EI sickness benefit claimants. These measures are in place for claims established between September 27, 2020 and September 25, 2021.

Results from the Evaluation of EI Sickness Benefits

Results from the Evaluation of EI Sickness Benefits released in 2020 indicate that claimants are less likely to return to work after 26 weeks of leave. Further, 45% of claimants who used all 15 weeks of benefits never returned to work.

Public environment

Health advocates, including the Canadian Cancer Society, note the need for a longer-duration sickness benefit in order to support longer recovery periods. The Bloc Québécois (BQ) put forward several motions to extend the EI sickness benefit to 50 weeks. Many members of the BQ, including the sponsor, have argued in support of Private Member’s Bill C-265 introduced on February 4, 2021, which proposes an extension of the EI sickness benefits from 15 to 50 week. Similar Private Member’s Bills have been introduced in the past by the NDP.

Platform commitment

Expand the EI sickness benefit from 15 to 26 weeks.

Prepared by

Name: Sarah Rutherford

Title: Policy Analyst, Employment Insurance Policy

Key contact

Name: Catherine Demers

Title: Director General, Employment Insurance Policy

Phone number: 819-654-6849

Approved by

Name: Elisha Ram

Title: AADM, Skills and Employment Branch

Phone number: 819-654-5212

Date

Date approved in ADMO: April 8, 2021

27. Parliamentary background and analysis

Official title: Parliamentary background and analysis appearance by the Honourable Minister of Employment, Workforce Development and Disability Inclusion Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) review of the Employment Insurance Program April 15, 2021, 3:30 p.m. - 4:30 p.m.

1. Background

On October 28, 2020, HUMA adopted a motion to undertake a Study on the Review of the Employment Insurance (EI) Program. On February 2, 2021, HUMA agreed to hold 5 meetings on the topic. ESDC officials appeared before HUMA at the first meeting on February 18, 2021. Other witnesses included the Canada Revenue Agency, Statistics Canada, the C.D. Howe Institute, Unions, Academics and Pierre Laliberté, Commissioner for Workers at the Canada Employment Insurance Commission.

Your appearance on April 15th will provide HUMA members with an opportunity to further discuss issues raised on February 18; including, EI eligibility/qualifying periods/percentage of income replaced/number of qualifying hours; EI zones; EI temporary measures; seasonal and gig workers; and guaranteed livable income.

Your appearance on April 15 will the Study. Tabling of the Committee Report is anticipated before the House rises in June. A Government Response will be required following the tabling of the Report.

The following ESDC officials will accompany you (virtually) to assist during your appearance:

Given your mandate commitment to review and modernize the EI Program and your recent appearances on C-24, An Act to amend the Employment Insurance Act (additional regular benefits), the Canada Recovery Benefits Act (restriction on eligibility) and another Act in response to COVID-19 and the Estimates, HUMA members may press for details on departmental efforts to modernize the EI Program, the extension of the sickness benefit, and inquire as to your level of support for Bill C-265, An Act to amend the Employment Insurance Act (illness, injury or quarantine) and provide the required Royal Recommendation.

2. Committee Proceedings

HUMA is composed of 12 MPs. The Chair is Liberal MP Sean Casey and 2 Vice-Chairs are CPC MP Raquel Dancho, Shadow Minister for Future Workforce Development and Disability Inclusion, and Bloc Québécois (BQ) MP Louise Chabot. Ms. Chabot is the BQ Employment Critic.

Other members are:

3. Parliamentary Analysis

Financial difficulties faced by Canadians during the pandemic have underscored the importance to modernize the EI Program as noted in the Throne Speech, which announced the Government’s intention to “build an Employment Insurance system for the 21st century”.

Based on general reactions to the Speech from the Throne and subsequent debates in the House of Commons and at HUMA, there is consensus amongst parties that the EI Program is in need of modernization. The pandemic, including the urgent need to financially support Canadians, brought renewed attention to the EI Program and its limitations. Opposition parties are looking for a more inclusive and responsive EI Program.

The BQ has been forthright about the need to modernize the EI Program. Employment Critic and HUMA Vice-Chair Louise Chabot stated that a complete overhaul of the EI Program is urgently required and is keenly interested in what the Government may recommend. Ms. Chabot asked you on November 4, 2020, to provide details on options considered by the Government to rebuild the EI Program. She asked a similar question on February 18, 2021, and may seek detailed information on the 15th as well. The BQ is in favour of modifying EI Program as it relates to maternity benefits, sick leave, qualifying hours, employee category elimination, and recognition of areas and/or regions with higher needs.

The NDP may raise similar issues as the BQ. In addition, the NDP has repeatedly called for EI eligibility requirements to be more inclusive by improving coverage for low-wage workers and the establishment of a common national entrance requirement. In 2016, the NDP tabled a motion asking the Government to reduce the entry requirement to 360 hours. On February 18, 2021, HUMA member Leah Gazan questioned ESDC officials regarding Government efforts to expand benefits for gig workers and implementation of a guaranteed livable income. These issues will likely be raised on April 15 considering the Report on guaranteed livable income released by the Parliamentary Budget Officer on April 7. The publication entitled Distributional and Fiscal Analysis of a National Guaranteed Basic Income concluded a guaranteed income could cut poverty rates nationally by almost half in 2022.

The CPC has expressed, on numerous occasions, concerns with the ambitious agenda the Government announced in the Throne Speech; in particular, its impact on the fiscal framework. The CPC has also raised concern with the integrity and reliability of the EI systems. The CPC may see assurance the EI systems are safe and that the government will make generational investments in updating outdated IT systems. Recently, the CPC has expressed support for the extension of the sickness benefit.

Support to extend the sickness benefit

The timing of your appearance coincides with the upcoming first hour of debate of Bill C-265, An Act to amend the Employment Insurance Act (illness, injury or quarantine) scheduled for debate on April 19, prior to the tabling of the Federal Budget. If adopted, Bill C-265 would extend sickness benefits from 15 to 50 weeks. In addition, on March 22, the Speaker of the House of Commons indicated that Bill C-265 would require a Royal Recommendation. On April 15, you may expect Louise Chabot, BQ, to question your level of support for Bill C-265; including, your willingness to provide a Royal Recommendation that would allow the Bill to proceed in Parliament. All parties have unanimously adopted a motion in the House of Commons in November 2020 to increase the benefits from 15 to 50 weeks. They will request that the Government accept the will of the House to implement this measure, which exceeds your mandate letter commitment to increase the benefit to 26 weeks.

EI of the future: Modernization of systems

Questions related to IT system modernization; including, the system supporting the EI Program, may be raised. The Auditor General of Canada published reports on the aging IT Government systems, warning Parliamentarians of the urgent need to invest in modernizing the technology. At your November HUMA appearance, the BQ requested that you update the Committee on IT systems and whether funding had been allocated to modernize the IT systems; including, increasing their security.

HUMA 2016 report: Looking back

The last HUMA Study on EI dates back to 2016, when the Committee devoted 5 meetings on the Study: Exploring the Impact of Recent Changes to Employment Insurance and Ways to Improve Access to the Program. The resulting 2016 Committee Report included recommendations on Enhancing Service Delivery. On February 18, the CPC requested a progress update on select recommendations from the 2016 Report. More specifically, the CPC may inquire about the services offered by Service Canada, current wait times and service delivery as Canada entered a 3rd wave of the pandemic.

28. Committee membership and biographies

Official title: House of Commons Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) - Committee Profile, (February 2021)

Table of contents

HUMA Membership

Liberal party of Canada

Sean Casey (Chair) Prince Edward Island

Sean Casey

Han Dong, Ontario

Han Dong

Wayne Long, Nouveau Brunswick

Wayne Long

Ryan Turnbull, Ontario

Ryan Turnbull

Adam Vaughan, Ontario, PS for Families, Children and Social Development (Housing)

Adam Vaughan

Kate Young, Ontario, PS for Economic Development and Official Languages (FedDev Ontario)

Kate Young

Conservative party of Canada

Raquel Dancho, Manitoba, Employment, Workforce Development and Disability Inclusion Critic

Raquel Dancho

Rosemarie Falk, Saskatchewan, Seniors Critic

Rosemarie Falk

Corey Tochor Saskatchewan Families, Children and Social Development Critic

Corey Tochor

Brad Vis, Colombie Britannique, Housing Critic

Brad Vis

New democratic party of Canada

Leah Gazan, Manitoba, Families, Children and Social Development Critic

Leah Gazan

Bloc Quebecois

Louise Chabot (Vice-Chair), Québec, Employment, Workforce Development and Labour Critic

Louise Chabot

Sean Casey, Liberal Party, Charlottetown, Prince Edward Island

Sean Casey

Brief Biography

Sean was born in St. John’s, Newfoundland but grew up in Fredericton, New Brunswick. He received his Bachelor of Business Administration with a major in Accounting from Saint Francis Xavier University. He worked for the New Brunswick Telephone Company before attending Dalhousie Law School, graduating in 1988. While attending Dalhousie, he was on the Student Union Executive and served as President of the Law Students Association. Upon graduating, Sean served as a summer student at what was then Scales Jenkins and McQuaid (now Stewart McKelvey) in Charlottetown, Prince Edward Island.

He continued to work with the firm and was named a partner at 29 years of age. In 2003, Sean left the firm to take a leadership role in the family business, commonly known as Paderno. That was also the year he ran his first of 4 marathons. In 2008, Sean rejoined Stewart McKelvey where he served as Regional Managing Partner. In 2011, Sean was elected the Member of Parliament of Charlottetown. He was re-elected in 2015, and again most recently in 2019. In Parliament, Sean has served most recently as the Parliamentary Secretary to the Minister of Fisheries, Oceans, and the Canadian Coast Guard. He has previously served as the Parliamentary Secretary to the Minister of Justice and Attorney General of Canada, as well as the Parliamentary Secretary to the Minister of Canadian Heritage.

He is currently the Chair of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities, a member of the Standing Committee on Veterans Affairs, and Chair of the Liberal Atlantic Caucus.

Wayne Long, Liberal Party, Saint John — Rothesay, New Brunswick

Wayne Long

Brief Biography

Wayne Long is a member of the Saint John community with national and international business experience. Wayne currently serves as President of the Saint John Sea Dogs, and his efforts have helped turn the team into one of Canada’s most successful CHL hockey franchises winning the cherished Memorial Cup in 2011. That same year, Wayne was recognized with the John Horman Trophy, awarded to the Top Executive in the QMJHL.

Prior to his work with the Sea Dogs, Wayne was President of Scotiaview Seafood Inc. He was also a successful large-scale product manager with Stolt Sea Farm Inc. Wayne’s work has seen him travel across North America, negotiating contracts with national restaurant distributors, restaurant chains, and retail chains. He earned the North American Excellence in Sales and Marketing award twice. Wayne is a former Board Member for Destination Marketing and Salmon Marketing.

Wayne was born in the riding, has lived in the riding 44 years, and currently calls the area home alongside his wife, Denise, and their 2 children, Khristian and Konnor.

Han Dong, Liberal Party, Don Valley North, Ontario

Han Dong

Brief Biography

Raised and educated in Toronto, Han Dong, his sister, and his parents immigrated to Canada from Shanghai in 1990. Growing up working at his parent’s 24-hour coffee shop, Han learned the value of hard work, family, and community which ultimately lead him to public service.

In 2014, Han was elected as a Member of Provincial Parliament (MPP), gaining valuable legislative experience.

Han works with a Toronto based high-tech company dedicated to building safer communities with digital neighbourhood watch technology. He has also shown leadership in promoting Toronto's diversity, currently serving as the leader of the Chinatown Gateway Committee established by Mayor John Tory.

Han and his wife Sophie, are the proud parents of Emma and Matthew.

Ryan Turnbull, Liberal Party, Whitby, Ontario

Ryan Turnbull

Brief Biography

Ryan Turnbull is a passionate change maker, experienced entrepreneur and social innovation that has devoted his life to advance ethical leadership, social responsibility, and build a more ethical economy and society. Ryan has raised his young family in the Durham Region for over 5 years and has deep roots in the Whitby community, where he recently moved.

Ryan has taken advanced leadership training and earned an MA in philosophy from Carleton University. Ryan has taught and developed curriculum at multiple post-secondary institutions around the world. Over the last decade, Ryan has led the development of a successful social innovation consulting firm that has had a direct social impact on the organizations, communities and the people they serve, in the Durham Region and across Ontario. Ryan has worked with over 250 charitable organizations, has advised government at all levels and has led over 350 impactful projects and his work has had a direct and positive influence on the quality of life for all segments of the population including children, youth, seniors, immigrants, refugees, people with disabilities, Indigenous people, women, LGBTQ2S, and many others. Ryan has also served on the board of directors for Food Secure Canada and the Ethics Practitioners’ Association of Canada.

Adam Vaughn, Liberal Party, Spadina—Fort York, Ontario

Adam Vaughn

Brief Biography

Adam Vaughan was first elected to the House of Commons for Trinity-Spadina on June 30, 2014. On October 19, 2015, Adam was re-elected in the new riding of Spadina-Fort York, and was re-elected for a second full term on October 21, 2019.

Adam was elected twice to Toronto City Council before voters sent him to Ottawa to represent urban issues in Parliament. As an activist and as a journalist, Adam has played a significant role in the social and economic growth of Toronto. Adam Vaughan brings a lifetime of experience to federal politics. On City Council he played a major role in reforming the planning process in the city. He led successful campaigns to rebuild and revitalize existing public housing stock while initiating new policies to create family housing, supportive housing and new co-op housing programs in Toronto.

Together with residents, he spearheaded the revitalization of the Alexandra Park community: a significant neighbourhood in Toronto that will see new affordable housing, new commercial space, a re-built community and more parkland added to the downtown. Adam Vaughan’s record in office demonstrates strong support for the arts and housing in Toronto.

While on council, he championed the expansion of OCAD University’s campus and led the campaign to save Theatre Passe Muraille. He also served on the Boards of the Toronto Arts Council, the Art Gallery of Ontario, Harbourfront Centre and Heritage Toronto. Before entering politics, Adam was a broadcast journalist for more than 20 years, specializing in municipal affairs for both the CBC and Citytv. He covered all 3 levels of government and has written about urban issues too.

In the 41st Parliament, Adam was appointed the Liberal Critic for Housing and Urban Affairs and worked with Justin Trudeau, Liberals, and local governments across the country to re-establish a national housing policy as part of a new urban agenda for Canada.

On December 2, 2015, Adam was appointed Parliamentary Secretary to the Prime Minister for Intergovernmental Affairs. He served in this role until January 26, 2017, when he was appointed to the position of Parliamentary Secretary to the Minister of Families, Children and Social Development (Housing and Urban Affairs).

On February 1, 2017, Adam was appointed to chair an Advisory Committee on Homelessness composed of experts and stakeholders in the field of homelessness to support the renewal of the Homelessness Partnering Strategy.

He is currently Parliamentary Secretary to the Minister of Families, Children, and Social Development (Housing) and a member of the Standing Committee on Human Resources, Skills and Social Development, and Status of Persons with Disabilities.

Kate Young, Liberal Party, London West, Ontario

Kate Young

Brief Biography

Kate Young was first elected Member of Parliament for London West in October 2015. She is the Parliamentary Secretary to the Minister of Economic Development and Official Languages (FedDev Ontario). She has also served as the Parliamentary Secretary for Transport for Science and Sport, and for Public Services and Procurement and Accessibility (Accessibility); and Parliamentary Secretary for Transport.

Prior to being elected, Kate had a lengthy career in journalism and public relations in both the private and public sector. Best known as the first female news anchor at CFPL-TV in London, Kate was also the Manager of Public Affairs and Community Relations for the Thames Valley District School Board and Manager of Community Relations at TD Financial Group.

As a community organizer, Kate has volunteered much of her free time with organizations that directly impact London West, including the London Health Sciences Foundation Board of Directors, the Fanshawe College Board of Directors, and the Museum London Board of Directors. In 2007, London City Press Club named Kate Newsmaker of the Year for her outstanding service to the London community.

Kate has a diploma in Journalism (Broadcast) from Fanshawe College and is the proud mother of 2 children. She is also a grandma to twin boys. Kate grew up in London West, attended Westminster Secondary School, and continues to live in the riding with her partner Brian.

Rosemarie Falk, Conservative Party, Seniors Critic, Battlefords — Lloydminster, Saskatchewan

Rosemarie Falk

Brief Biography

Rosemarie Falk is the federal Member of Parliament for Battlefords-Lloydminster. She was first elected to the House of Commons in a federal by-election on December 11, 2017.

Under the leadership of the Hon. Erin O’Toole, Rosemarie serves as the Shadow Minister for Seniors. She is also a member the Standing Committee on Human Resources, Skills and Social Development and Status of Persons with Disabilities.

Rosemarie was born and raised in Lloydminster, Saskatchewan. Along with her husband Adam, she is now raising her 3 children there. She has a Bachelor of Social Work from the University of Calgary. Throughout her work and volunteer experience, she has been actively engaged in her community working with some of the most vulnerable members of the community.

Rosemarie is committed to being a strong voice for seniors, families, taxpayers and rural communities. She is in federal politics to help build a stronger Canada today and for the next generation.

Raquel Dancho, Conservative Party, Employment, Workforce Development and Disability Inclusion Critic, Kildonan – St. Paul, Manitoba

Raquel Dancho

Brief Biography

Raquel Dancho is the Member of Parliament for Kildonan – St. Paul – elected on October 21, 2019.

Ms. Dancho grew up in Beausejour, Manitoba, from 4 generations of Canadian farmers. Raised in a family of entrepreneurs, she learned the importance of personal responsibility, resourcefulness and perseverance at a young age. She is the first in her family to attend university and the first to work in politics.

Ms. Dancho has 15 years of diverse work experience in both the public and private sector. She dedicated many hours of volunteer work with the elderly, children in Child and Family Services, and at her local church. She has also coached various sports in her hometown and been politically active since childhood.

Ms. Dancho graduated with a French-bilingual high-school diploma and went on to receive a Bachelor of Arts degree from McGill University, majoring in Political Science, and minoring in World Religions and Canadian Studies. While attending university, she worked in a French restaurant to pay her bills and better her French skills.

Following university, Ms. Dancho earned a competitive research internship at the Frontier Centre for Public Policy in Winnipeg. Shortly thereafter, she became a policy analyst in the Progressive Conservative Caucus for Manitoba’s Official Opposition.

Following the 2016 Manitoba Progressive Conservative election victory, she became the Executive Assistant to the Minister of Sustainable Development for the Manitoba Government. She was then promoted to serve as the Special Assistant to the Minister of Sport, Culture and Heritage for the Manitoba Government.

Corey Tochor, Conservative Party, Families, Children and Social Development Critic, Saskatoon—University, Saskatchewan

Corey Tochor

Brief Biography

Corey Tochor is the Member of Parliament for Saskatoon University – elected on October 21, 2019.

Prior to entering politics, Mr. Tochor was a local Saskatoon entrepreneur who owned and operated Health Conveyance, a communications company that provides electronic messaging in health facilities across the province. He graduated with a commerce degree from the University of Saskatchewan with a major in Finance. He had a successful career in sales, e-learning consulting and pharmaceuticals before starting his own business.

As an active volunteer in his local community, Mr. Tochor has served for many years on the executive of the Kinsmen Club of Saskatoon, including on the corporate board for Telemiracle 33, chair of fundraising projects and treasurer of the Kinsmen Activity Place House, a community center supporting Saskatoon’s core.

Mr. Tochor has a wealth of legislative experience and was first elected to the Saskatchewan Legislature in the 2011 provincial election and re-elected in 2016. His legislative responsibilities began early in his first term when he served as Deputy Chair of Committees. He then served as Deputy Whip and was later appointed Deputy House Leader by Premier Wall. Shortly after being re-elected, Mr. Tochor was elected Speaker of the Legislature.

Mr. Tochor was born and raised in Esterhazy, Saskatchewan. He currently resides in Saskatoon with his wife Danielle and their 2 young sons, Jacob and James.

Brad Vis, Conservative Party, Housing Critic, Mission—Matsqui—Fraser Canyon, British Columbia

Brad Vis

Brief Biography

Born in Matsqui, British Columbia, Brad has deep roots in the Fraser Valley. The grandson of Dutch immigrants, he was raised on the values of hard work, sacrifice, integrity and determination.

Brad has spent the majority of his career working in government, politics and the agri-business sector. His professional background extends to the fields of communications, public relations and policy development.

Brad holds a bachelor’s degree in Political Science from the University of British Columbia and a master’s degree in Political Science from Carleton University.

Elected in 2019, Brad is honoured to represent all residents of Mission–Matsqui–Fraser Canyon and is thrilled to work hard on their behalf. His mission is to raise issues and work to accomplish the goals of the riding in Ottawa rather than work as Ottawa’s representative in the riding.

Under the leadership of the Hon. Erin O’Toole, Brad serves as the Shadow Minister for Housing and is a member of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA).

Brad is happily married to Kathleen and the father of Declyn and Nicholas.

Leah Gazan, New Democratic Party, Families, Children and Social Development Critic, Winnipeg Centre, Manitoba

Leah Gazan

Brief Biography

Leah Gazan was elected as the Member of Parliament for Winnipeg Centre in October 2019. She is currently the NDP Critic for Children, Families, and Social Development, as well as the Deputy Critic for Immigration, Refugees, and Citizenship. Gazan is a member of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities, and the Standing Joint Committee on the Library of Parliament. She recently introduced a private member's bill, Bill C-232, The Climate Emergency Action Act, which recognizes the right to a healthy environment as a human right.

As an educator, advisor, and media contributor, Leah Gazan has been deeply engaged with issues and organizing in Winnipeg’s core for nearly 3 decades. Gazan has spent her life working for human rights on the local, national, and international stage. Her recent success includes organizing and traveling across the country to push Bill C-262, the Indigenous Human Rights Act.

Her contributions in Winnipeg have both shaped our understanding of our collective struggles and strengths, and helped move us towards justice. As president of the Social Planning Council between 2011 to 2015, Gazan organized and pushed policy in support of an end to poverty, addressing violence against women and girls, finding solutions for housing insecurity and homelessness, ensuring fair wages, community-based actions addressing addictions, and proper supports for mental health.

Gazan was a prominent Winnipeg lead during Idle No More, articulating the movement to the Winnipeg public. Gazan also co-founded the #WeCare campaign aimed at building public will to end violence against Indigenous women and girls. Gazan is a member of Wood Mountain Lakota Nation, located in Saskatchewan, Treaty 4 territory.

Louise Chabot, Bloc Québecois, Employment, Workforce Development and Labour Critic, Thérèse-De Blainville, Quebec

Louise Chabot

Brief Biography

Louise Chabot, born in 1955 in Saint-Charles-de-Bellechasse, Quebec, is a Quebec trade unionist and politician. She was president of the Centrale des Syndicates du Québec (CSQ) from 2012 to 2018. The organization initially represented nearly 200,000 members, including 130,000 in the education and early childhood sector. She coordinated a major unionization project that resulted in the consolidation of more than 15,000 family day care managers, a first in the union world in Canada. On October 21, 2019, she was elected as a Bloc Québécois Member of Parliament for the riding of Thérèse-de-Blainville.

29a. HUMA 2016 EI report

The HUMA 2016 EI Report is online.

29b. HUMA 2016 EI GR

Mr. Bryan May, M.P. Chair, Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities House of Commons

Ottawa ON K1A 0A6

Dear Colleague,

Pursuant to Standing Order 109 of the House of Commons, I am pleased to respond on behalf of the Government of Canada to the recommendations made by the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities in its report entitled Exploring the Impact of Recent Changes to Employment Insurance and Ways to Improve Access to the Program, tabled in the House of Commons on June 15, 2016.

The Government thanks the members of the Standing Committee (the Committee) for their valuable study examining recent changes to Employment Insurance and providing recommendations on ways to improve the program to better serve the needs of workers and employers.

The Government also thanks the many witnesses, including businesses of all sizes, associations, research organizations, employers, labour groups, claimants, and experts who appeared before the Committee. Their insights on the various elements of the Employment Insurance (EI) Program are both informative and valuable.

EI is an important social and economic program, helping Canadian workers and supporting an efficient labour market. The EI Program fulfills a core need for Canadians as a social safety-net that provides economic security when they need it most. In addition to its role as an economic and social stabilizer for individuals and regions, a modernized EI Program could also play an enhanced role for the broader economy by supporting the labour market and family-related transitions of Canadians in a manner that corresponds to evolving labour market needs and improves productivity and competitiveness in Canada.

The Government is committed to improving the EI Program and is engaging Canadians on improvements to EI special benefits and service delivery. Along with the Committee’s report and recommendations, these consultations will help inform the next phase of EI changes to ensure the program serves the needs of today’s labour market.

The EI program plays a key role in Canada’s economic and social union by providing temporary income support to replace lost employment income to individuals who become unemployed involuntarily; or, are off work due to sickness, pregnancy and childbirth, caring for a newborn or newly adopted child, caring for a family member who is seriously ill with a significant risk of death, or caring for a critically ill child.

Beyond providing income support, the programs delivered under Part II of the Employment Insurance Act assist individuals to prepare for, obtain and maintain employment through training and work experience programs. These benefits enable claimants to gain training, work skills and experience relevant to local labour market needs.

Budget 2016 announced measures to improve and modernize EI in order that more Canadians get the help they need when they need it.

The Government remains committed to further improving EI and this includes making compassionate care benefits easier to access, more flexible and more inclusive for those who provide care for seriously ill family members, providing more flexibility in parental leave benefits to better accommodate unique family and work situations, and reducing the EI premium rate in 2017.

The Government welcomes the Committee’s recommendations. The Response addresses the Committee’s report and recommendations under 3 themes:

  1. Modernizing Employment Insurance
  2. Strengthening Labour Force Participation, and
  3. Enhancing Service Delivery and Accountability for Canadians

Modernizing Employment Insurance

EI eligibility

The Committee’s report identifies the importance of access to the EI program and captures the fact that various measures are used to report on access. The Statistics Canada EI Coverage Survey eligibility rate is a targeted measure to profile eligibility of those who have paid EI premiums and have a valid reason for separation. This measure provides information on why some unemployed are not receiving benefits, such as those who did not accumulate enough insurable employment hours or did not submit a claim. The EI Coverage Survey eligibility rate for 2014 was 83%. The beneficiaries-to-unemployed ratio is often cited by the media as a measure of access to EI, however this ratio includes individuals who have not contributed EI premiums in the past 12 months ( for example, long-term jobless individuals, formerly self-employed), therefore presenting a negatively distorted measure of access.

A fundamental principle of the EI program is that to qualify for EI regular benefits claimants must lose their employment through no fault of their own. In practice this means that workers who are dismissed as a result of their own misconduct, or who quit without “just cause” are disqualified from receiving benefits under the EI program. However, there may be circumstances where it would be appropriate to have more flexible eligibility criteria or disqualifications. The Government will consider exploring the eligibility requirement for “valid job separation”.

The Government recognizes that many new workers—such as young Canadians and recent immigrants—find it difficult to access EI support when needed. Prior to Budget 2016, new entrants and re-entrants to the labour market had to accumulate at least 910 hours of insurable employment before being eligible for EI regular benefits. Budget 2016 amended the rules to eliminate the higher EI eligibility requirements that restricted access for new entrants and re-entrants to EI benefits. With these changes, which came into effect on July 3, 2016, these claimants have the same eligibility requirements as other claimants in the EI economic region where they live. An estimated 50,000 additional claimants annually will become eligible for EI benefits as a result of this measure. Also, like all other EI regular claimants, these claimants will be eligible to receive EI funded training and other supports through the Labour Market Development Agreements which were increased by $125 million in 2016 to 2017.

Special benefits

The EI special benefits represent a growing proportion of total EI benefits paid. These benefits serve a key insurance function and along with corresponding leaves under employment standards legislation, the benefits play an important role in helping working Canadians across the country to balance their work and family responsibilities and maintain their attachment to the labour force. Rather than remove these benefits from EI, the Government has committed to introducing more flexible parental benefits and more inclusive and flexible caregiving benefits. The Government continues to engage Canadians in order to further improve special benefits. Over time, consideration could be given to further changes to ensure that special benefits remain responsive to the evolving needs of Canadians.

The EI sickness benefit is designed to provide temporary income support for short-term absences from the labour force due to illness, injury or quarantine. While the 15 weeks of benefits appear adequate for the majority of workers, some claimants do exhaust their sickness benefits and stakeholders often request an extension in the case of more serious illnesses. In 2014 to 2015, on average, claimants of the EI sickness benefit collected 10 weeks of benefits and 34.8% used all of the 15 weeks available to them. The EI sickness benefit complements a range of other supports that are available for workers with longer-term illnesses, including benefits offered through employer-sponsored group insurance plans, private coverage held by individuals and long-term disability benefits available under the Canada Pension Plan and provincial and territorial programs. Improvements to the sickness benefit including potential extension of the maximum duration would require careful consideration of the interactions with other supports, impacts on employers, and would be expected to have a significant cost implication, with resulting premium rate increases.

EI economic regions

The Government is committed to ensuring that the EI program is better aligned with the realities of labour markets and serves workers and employers. A review of EI boundaries is a multi-step process in which the Government analyzes and compares labour markets across the country. The purpose of boundary review is to determine whether the current EI economic regions continue to reflect current labour market characteristics, ensuring that those living in similar labour markets are treated similarly by the program. A boundary review is currently underway.

Strengthening labour force participation

Promoting a successful return to the labour force

Budget 2016 simplifies the job search responsibilities for EI claimants by reversing the 2012 EI changes that specified the type of jobs that unemployed workers were expected to search for and accept. As of July 3, 2016, the Government has reversed job search responsibilities, requirements, and obligations that strictly defined suitable employment as it pertains to job search responsibilities of unemployed workers with respect to commuting times, offered earnings, and types of work. The Government continues to maintain the long-standing requirements that claimants must search for and accept available work while on EI. The Government remains committed to providing EI claimants with flexible and modern job search support.

Employment and Social Development Canada (ESDC) currently promotes claimants’ responsibilities through Client Information Sessions, and has implemented initiatives to strengthen and integrate online employment services, including a targeted e-Marketing campaign focused on encouraging unemployed Canadians to use Job Bank Services, and improved automation of the enrollment in Job Alerts of Job Bank to provide claimants with flexible and modern job search support. Job Alerts is a free e-mail service that notifies users when new job opportunities are available on Job Bank.

Working While on Claim pilot

The new Working While on Claim pilot, which took effect on August 7, 2016, provides flexibility to claimants (receiving regular, fishing, compassionate care, parental or parents of critically ill children benefits) to have their earnings while on claim treated using the default approach that reduces claimants’ weekly EI benefits by 50 cents for each dollar earned while on claim (up to the threshold of 90% of average weekly earnings) or opt to use an allowance of $75 or 40% of their weekly EI benefits. This flexibility will reduce disincentives to accepting work for claimants unable to find more than one day of work per week. In addition, this option is already being promoted through the Service Canada website with information targeted to EI recipients, and will also be promoted through videos to be posted on social media ( for example ESDC Facebook and Twitter feeds) and on Youtube.

The Canada Employment Insurance Commission will continue to monitor the effectiveness of the WWC pilot through the annual Employment Insurance Monitoring and Assessment Report, which is tabled in Parliament. An assessment of the new pilot project will be completed and be presented in the Employment Insurance Monitoring and Assessment report when available. As data is available, it will be used to inform a potentially permanent approach to the treatment of earnings while receiving EI benefits.

Work-Sharing program

The Government of Canada agrees with the Committee’s findings that the Work-Sharing program is a good tool to prevent lay-offs during challenging economic times, and Budget 2016 enhances the Work-Sharing program by temporarily extending the maximum duration of Work-Sharing agreements from 38 weeks to 76 weeks across Canada for business directly or indirectly affected by the downturn in the commodities sector. Work-Sharing agreements help employers retain skilled employees and avoid the costs of recruiting and training new employees when business returns to normal levels. This program also enables employees to continue working and maintaining their skills while supplementing their wages with EI benefits for the days they are not working.

ESDC continues to implement measures to raise awareness of the Work-Sharing program through Ministerial announcements, media engagement, engaging Provincial and Territorial partners, social media, and other online tools. Between April 1, 2016 and July 31, 2016 there were over 1,000 active work-sharing agreements in place, impacting more than 23,000 employees. These represent significant increases compared to the same period last year.

Enhancing service delivery and accountability for Canadians

Improving service delivery for Canadians

The Government understands that Canadians want better and faster services from their Government – services that are delivered in a way that meets their expectations. That is why, in Budget 2016, the Government committed funding to support a number of improvements to the EI system to ensure that Canadians get timely access to the benefits they need. Among these investments: $73 million over 2 years to enhance access to EI call centers. This will allow the EI call centre network to immediately increase the number of call centre agents, improve accessibility and reduce call wait times; and, $19 million for EI program responsiveness in 2016 to 2017 to enable Service Canada to process an increased number of claims.

In addition, the Government is currently conducting the EI Service Quality Review, which includes nationwide consultations with EI stakeholders and Canadians on:

The purpose is to make recommendations on improvements to the EI system in the fall 2016. Consultation feedback will inform how Service Canada administers the EI program so that resources are focused on providing the best possible service to Canadians.

Review of the Social Security Tribunal

The Social Security Tribunal is a fairly new administrative organization mandated to provide a fair, credible and accessible appeals process for Canadians. It is an independent body that makes quasi-judicial decisions on appeals related to the Canada Pension Plan, Old Age Security Act or the Employment Insurance Act.

The Government is committed to providing a quick, effective and efficient system of appeals that will ensure that Canadians get the support they need when they need it most. To that end, the Government notes the Committee recommendation and will consider a review of the Social Security Tribunal, under the direction of the Minister.

Improving accountability to Canadians

Beginning with the 2017 EI premium rate, the Canada Employment Insurance Commission is responsible for setting the annual premium rate according to a new 7-year break-even mechanism, based on the forecasts and estimates of the EI Chief Actuary. This mechanism was established in response to public consultations with key stakeholders, and the EI Commissioners for Workers and Employers who represent the interests of their respective constituencies.

The new 7-year rate-setting approach was designed to promote stability and transparency in the EI premium rate-setting mechanism with the aim to balance the EI Operating Account over time. Since the EI Operating Account is fully consolidated in the Government’s financial statements (EI revenues and expenses are part of federal Government revenues and expenses) this rate-setting approach promotes fiscal accountability in addition to stability and transparency in the EI premium rate.

Conclusion

The Government is committed to improving EI and reducing the premium rate in 2017. The EI initiatives announced in Budget 2016 have made significant improvements to enhance access, particularly for youth, to simplify job search obligations for EI claimants, to reduce the waiting period from 2 weeks to 1 week, and to provide additional temporary EI support to the regions most affected by the commodities downturn.

The Government agrees with the Committee’s objective to improve the EI Program and will continue to engage Canadians through consultation processes on service delivery and on parental and caregiving benefits. Finally, the Government will take the Committee’s recommendations into consideration, as it continues with the next phase of improvements to the EI Program to better align the program with today’s labour market realities.

Yours sincerely,

Jean-Yves Duclos

Minister, Families, Children and Social Development

30. PBO Report - Distributional and fiscal analysis of a National Guaranteed Basic Income

The PBO Report - Distributional and Fiscal Analysis of a National Guaranteed Basic Income is online

Page details

Date modified: