Backgrounder – Federal Court approves settlement between Government and parents for EI sickness benefits

On October 24, 2010, Mrs. Jennifer McCrea qualified for maternity and parental benefits. While receiving parental benefits, she was diagnosed with cancer. She subsequently requested to switch to sickness benefits and was denied.

Mrs. McCrea alleges that the Government was negligent in its interpretation and administration of the EI Act, following amendments made to the EI Act in 2002, by not allowing EI claimants in receipt of parental benefits, like Mrs. McCrea, to switch to sickness benefits in the period of 2002-2013.

The Federal Court has approved a settlement agreement between the Government and the class representative, Mrs. Jennifer McCrea, to provide compensation and bring closure to this group of parents who were denied sickness benefits between 2002 and 2013.

Under the settlement, class members will receive an amount equal to what they would have been paid had the legislation permitted the payment at the time. The total settlement amount is estimated at between $8.5 million and $11 million.

Since 2013, EI claimants who fall ill or are injured during their parental benefits period may switch to sickness benefits.