Supplemental Unemployment Benefit Program

On this page

• Overview
• Basic requirements
• Program guide
• Contact us

Overview

Employers can use Supplemental Unemployment Benefit (SUB) plans to increase their employees’ weekly earnings when they are unemployed due to a temporary stoppage of work, training, illness, injury or quarantine.

When these SUB plans are registered and meet all requirements, payments are not considered as earnings and are not deducted from Employment Insurance (EI) benefits.

Basic requirements

SUB plans must be registered before their effective date and meet the requirements set out in the Employment Insurance Regulations.

An acceptable plan is one that:

• identifies the group(s) of employees covered
• covers a period of unemployment caused by 1 or a combination of the following:
  • temporary stoppage of work
  • training
  • illness, injury or quarantine
• requires employees to apply for and be in receipt of EI benefits in order to receive payments under the plan, but the plan may provide payments to an employee who is not in receipt of benefits for 1 or more of the following reasons:
  • the 1-week EI waiting period is being served
  • the employee does not have enough hours of insurable employment to qualify for EI benefits
  • all of the EI benefits to which the employee was entitled have been paid
• requires that the combined weekly payments from the plan and the portion of the EI weekly benefit rate does not exceed 95% of the employee’s normal weekly earnings
• requires that it be entirely financed by the employer and that the employer keep separate records of the SUB payments
• requires that, on termination, all remaining assets of the plan will be reverted to the employer or be used for payments under the plan or for its administrative costs
• requires that written notice of any change to the plan be given to Service Canada within 30 days after the effective date of the change
• provides that the employees have no vested right to payments under the plan except during a period of unemployment specified in the plan
• provides that payments in respect of guaranteed annual remuneration, deferred remuneration or severance pay will not be reduced or increased by payments received under the plan

Program guide

The Supplemental Unemployment Benefit Program guide provides:

• detailed information about the SUB program
• the plan requirements
• a sample plan to help you create your SUB plan
• explanations on how to register your plan
• the SUB plan registration form

Contact us

For more information about the SUB Program, contact us

Related links

• Access Record of employment on the Web for employers
• Automated Earnings Reporting System
• EI Premium Reduction Program: For employers
• Employers: How to complete the record of employment (ROE) form
• How to complete the ROE for teachers and other school board employees
• Report on Hirings user guide - File
• Supplementary unemployment benefit plan (SUBP)
• Weekly pay-periods worksheet