Digest of Benefit Entitlement Principles  Chapter 19 - Section 2

19.2.0 Referred claimants

A person who is to be referred to a course or program of instruction or an employment activity under EI Part II needs to meet the definition of an "insured participant". For the purposes of EI Part II, an "insured participant" is defined as being an insured person or EI claimant:

1. for whom a benefit period is established or whose benefit period has ended within the previous 60 months, or
2. who paid, in at least 3 of the last 10 years, employee premiums that did not entitle the person to a refund under EIA 96(4), and
3. who was in receipt of the EI Emergency Response Benefit (EI ERB) within the previous 60 months (EIA 58)

A benefit period that is cancelled cannot be used by a claimant to meet the definition of "insured participant" because a benefit period that is cancelled is deemed never to have begun (EIA 10[6]; EIA 10[7]). Consequently, the cancellation of a benefit period could affect a person's eligibility for EI Part II where that person has no effective benefit period. It should be noted that when a new benefit period is established, canceling a previous benefit period does not create a problem: the claimant can now meet the definition of "insured participant" because a new benefit period is established.

Once a claimant is referred to a course or program of instruction or an employment activity pursuant to an authority delegated by the Commission, the claimant is deemed to be unemployed, capable of and available for work for the duration of their participation in the course or program of instruction or employment activity (EIA 25). This applies even if the claimant is absent for part of the course or employment activity, or if the course or employment activity is interrupted—for example, during the summer break—if the referral remains in effect. This legislative provision is a clear and specific exception to the general rule set out in the sections dealing with capability, availability and the state of being unemployed (EIA 11; EIA 18).

Nonetheless, all claimants referred to such training or activity must still fulfill all other provisions under the EIA and EIR.

There are no legislative provisions that would mandate a referral for a claimant to a course or an employment activity. Referral is a discretionary power that only the Commission, or its designate, may exercise when it deems it appropriate (Federal Court of Appeal [FCA] A-690-75; FCA A-787-76; FCA A-127-77; FCA A-1122-87).

19.2.1 Allowances paid by the Commission

While insured participants collect EI (Part I), they may also receive financial assistance under EI Part II benefits depending on the terms and conditions negotiated at the time of their referral. This financial assistance under Part II benefits may include financial support to meet living expenses, the cost of tuition, the cost of childcare, a transportation allowance, the cost of meeting employment needs arising because of a disability, a benefit top-up, etc. This financial assistance under Part II benefits is not deducted as earnings from EI benefits (Part I) except in specific situations (EIA 19[4]; EIR 16[3][a], [b], [c]; Digest 19.2.2).

19.2.2 Earnings and allowances from employment benefits, courses, and programs

Earnings or allowances payable under Part II to a claimant for attending a course of instruction or training to which there was a referral are not deducted from EI benefits payable under Part I, except in accordance with EIA 19(4) and EIR 16.

Earnings from employment under EI Part II are not deducted from EI benefits payable under Part I, such as earnings received from any employment resulting from a Part II program that does not create an ongoing employer-employee relationship (EIA 19[4]). Earnings that are not from employment under EI Part II are deducted from EI benefits and are subject to allowable earnings (EIA 19[2]).

19.2.3 Voluntarily leaving employment to take a course or an employment activity

An employed person may be referred to a course or employment program and continue their employment at the same time.

If a claimant voluntarily leaves their employment before beginning a referred course or employment program, the claimant must demonstrate just cause for voluntarily leaving their employment (EIA 29). A designated authority can validate that a claimant had just cause for the purposes of qualification for Part I benefits, as they enter a Notice of Intent to refer the claimant to a course or employment program once their claim is established.

When a designated authority recommends a person leave their job to attend a referred course or program of instruction or participate in a referred employment activity, the claimant is considered to have just cause for leaving that employment, provided the departure occurs within a reasonable timeframe, generally no more than 2 weeks before the start of the course or the employment activity (Digest 6.8.1).

Depending on the circumstances, a person so referred may show just cause for leaving employment more than 2 weeks before the start of the course or the employment activity on presentation of credible documentation or with credible declarations on the necessity for preparations (example, moving) which require more than 2 weeks.

In both instances, to be entitled to EI benefits for that period, the person is still required to meet the conditions of being unemployed, available and able to work before the beginning of the course or the employment activity and while the arrangements are being made–otherwise they are subject to a disentitlement.

19.2.4 Consequences of a disqualification

To ensure that income support is maintained while the claimant takes a course or an employment activity, any unserved portion of a definite disqualification  will be deferred for the period for which the referral to the course or the activity by a designated authority remains in effect (EIA 25; EIA 27[1.1]; EIA 28[5]).

Any portion of the disqualification not served when the claimant's benefit period ends shall be served in any subsequent benefit period established within 2 years after the event giving rise the disqualification (EIA 28[3]).

However, a disqualification where the claimant lost an employment due to misconduct or voluntarily left the employment without just cause, cannot be deferred because the disqualification is imposed for each week in that benefit period for which benefit would otherwise be payable following the claimant's waiting period (EIA 30; EIA 28[2]).

19.2.5 Refusal to be referred to a course or an employment activity

No disqualification is imposed when a claimant refuses to be referred to a course or an employment activity by the Commission or a designated authority. Training courses and employment activities are not mandatory.

A claimant who agrees to be referred to a course or an employment activity but fails to attend without good cause is subject to a disqualification (EIA 27[1.1]; Digest 19.2.7). In such cases, it is necessary to determine the reason for the claimant's failure to attend the course or the employment activity to determine their entitlement to benefits.

19.2.6 Absence from the course or the employment activity

A claimant who is absent from the course or the employment activity for a given period for reasons related to capability, availability for work and unemployed status, is not disentitled from EI benefits for these reasons for any day or period during which the referral to a course or an activity is maintained by the designated authority (EIA 25[1]; Digest 19.2.0). This interpretation applies whether the absence is or is not authorized.

19.2.7 Disqualification — withdrawal from a course or an employment activity

A disqualification is imposed when the referral has been terminated for any of the following reasons:

• without good cause, the claimant does not attend or participate in the course, program or employment activity and, in the opinion of the Commission, it is unlikely that the claimant will successfully complete the course, program or employment activity, or
• without good cause the claimant has withdrawn from the course, program or employment activity, or
• the organization providing the course, program or employment activity has expelled the claimant(EIA 27(1.1)(b))

Consideration must be given to the existence or not of "good cause" in situations where a claimant has not attended or participated, or has withdrawn from a course, program or employment activity (EIA 27[1.1][b][i], [b][ii]). Extenuating circumstances must be considered when a claimant is disqualified because of an absence, non-participation or withdrawal or an expulsion from a course, program or employment activity. The Commission considers the reasons for the non-attendance, non-participation, which resulted in the withdrawal or termination and makes the decision whether there was "good cause" and on the applicability and the length of a disqualification.

On the other hand, there is no mention of "good cause" when the claimant is expelled by the organization providing the program; suffice to say a) the claimant was referred, b) the claimant was expelled, and c) the referral has been terminated by the Commission (EIA 27[1.1][b][iii]). In this situation, the claimant is subject to a disqualification.

Of course, the course or program of instruction or employment activity must be one to which there is a referral to which the claimant has agreed (EIA 27[1.1][a]). The referral is terminated before the disqualification is imposed. Any disqualification is imposed as of the next week to be processed (Digest 19.2.4).

The decision as to whether the non-attendance or non-participation makes it unlikely that successful completion will occur is at the discretion of the referring authority (Digest 19.1.1).

19.2.8 Disentitlement

A disentitlement that is in effect when the referred claimant begins the course or the employment activity is not automatically terminated except in cases where the disentitlement is related to capability, availability and being unemployed, because the claimant is deemed to have met these requirements (EIA 25[1]).

As well, a disentitlement resulting from a stoppage of work attributable to a labour dispute may be suspended during the period for which the claimant is referred to a course or the employment activity if the claimant demonstrates being otherwise entitled to EI benefits, that the absence from work was foreseen, and that steps in this direction were taken before the stoppage of work (EIA 36[3]; Digest 8.10.0).

A disentitlement for reasons other than those mentioned above is not terminated until the specific conditions related to the disentitlement are met.

In some situations, the claimant may be eligible for financial assistance under EIA Part II during the period where there is no entitlement to receive EI benefits. Eligibility to this financial assistance is established by the EI Part II agreement holder.

19.2.9 Extension of the qualifying period

The qualifying period may be extended by the number of weeks during which the claimant was not employed in insurable employment because the claimant was receiving financial assistance under EIA Part II and was not in receipt of EI benefits under Part I for those weeks (EIA 8[2][c]; EIA 8[5]).

The maximum qualifying period is 104 weeks (EIA 8[7]).

19.2.10 Extension of the benefit period

The benefit period is not extended for an individual referred to a course or a program of instruction or an employment activity (EIA 9, EIA 10). Once the benefit period terminates, the insured participants may then receive financial assistance under EIA Part II in accordance with the EIA Part II provisions (EIA 58).

A claimant whose benefit period was established for fishing benefits and who was also referred on a course or program of instruction or an employment activity  will have that benefit period terminate at the end of the week in which June 15 or December 15 falls, depending on whether the claimant is a summer or winter fisher (EIA 25; EIR 8). No extension will be granted beyond these dates.

19.2.11 Training outside Canada

A claimant who is attending a course or program of instruction or an employment program under Part II outside of Canada, to which the claimant was referred by a designated authority, is not disentitled for the sole reason of being outside Canada (EIA 25[1]; Digest 19.1.1; EIR 50; EIR 55[4]; EIR 55[11]; EIA 63). These claimants are considered to be unemployed, capable of and available for work during any absence, whether they are in Canada or not, provided the referral remains in effect. By policy, referrals outside of Canada to the work experience portion of the course or program of instruction and the acquisition of new technology or training not available locally, more conveniently, or more cost-effectively in Canada. Designated authorities may have their own policies in this regard.

19.2.12 Waiting period

A waiting period applies to the benefit period of a claimant referred to a course or an employment activity  and no EI benefits (Part I) are paid during that period (EIA 13; EIA 25[1]).

19.2.13 Being an inmate in any prison or similar institution

The Act does not provide for the payment of EI benefits to anyone who is an inmate of such an institution (EIA 37). The exception is when the claimant has been granted parole, day parole or temporary absence or a certificate of availability for the purpose of seeking and accepting employment in the community (EIR 54; Digest 10.11.7). Where the exception applies, the claimant is subject to the same rights and obligations as other claimants who are referred to training or employment activity under the Act.

19.2.14 Appeals

A decision of the Commission or a designated authority about the referral of a claimant to a course, program, or other employment activity or about a decision made in relation to EI Part II, other than the imposition of penalties related to this financial assistance, is not subject to appeal (EIA 25[2]; EIA 64; EIA 65.1;EIA 64).

Any additional decision is subject to appeal in the usual manner (EIA 113).

19.2.15 Apprentices

Claimants referred by the Commission or a designated authority to an apprenticeship training course are subject to the same rights and obligations as other claimants referred to a course under the Act.

19.2.16 Claimants referred to a training course that is not under Part II

Claimants referred to a training course that is not under Part II are subject to the same rights and obligations as other claimants referred to a course, program or other employment activity under EIA 25. Claimants who are referred to a non-EI Part II training course may continue to be entitled to income support in the form of EI benefits (Part I), but may not receive financial assistance under Part II because they are not participants in a Part II program.

19.2.17 Employment assistance services

Employment Assistance Services (EAS) provide employment interventions that help clients prepare for, find, get and keep jobs.

As already stated, to receive EI benefits (Part I) a person must be unemployed, capable and available for work. The only exception to this is when a person is attending a course or program of instruction or training or is participating in an employment activity to which that person was referred, in which case the claimant is considered unemployed, capable of and available for work.

Claimants who are partake in EAS since are not issued a referral for these interventions, and therefore, are not exempt from the requirement to be unemployed, capable and available for work as any other person claiming EI benefits (EIA 25, EIA 18).

Availability is assessed on a case-by-case basis, taking into consideration the circumstances of each. What is important to remember is that it is not the fact that a person is on training or participating in EAS (which could be a job finding club) that makes that person not available, rather it is the restrictions that the person imposes towards the acceptance of employment that may render that person not available for work.

A claimant shows availability for work when the claimant establishes a willingness and readiness to accept any employment for which the claimant is suited by skills, training and aptitude and for which there is a demand in the labour market. Jurisprudence has also defined availability as either a sincere desire to work, demonstrated by an attitude and conduct, and accompanied by reasonable efforts to find a job, or as a willingness to reintegrate into the labour force under normal conditions without unduly limiting the chances of work (Digest 10).

19.2.18 Penalties

The Commission may impose a penalty for each act or omission of not more than the financial assistance provided, on a person for knowingly making false or misleading representations, including non-disclosure in relation to the application or request for assistance under an EI Part II program established by the Commission, or for, without good cause, failing to attend, carry out or complete a course, program or activity for which the assistance was provided or was expelled from it (EIA 65.1). This penalty can only be imposed if financial assistance has been paid in relation to EI Part II (EIA 61).

The maximum penalty for each act or omission may be equal to the cost of the course plus an amount equal to any other expenditure relating to the course. A liability to return the amount of the penalty is established and can be collected by deduction from any future EI benefits that may be come payable. This could be in addition to any disqualification that may be imposed as a result of EI benefits being paid (EIA 27[1.1]).

Amounts repayable and penalties are a debt due to the Crown and may be recovered from benefits (EIA 65; EIA 65.1[1]; EIA 65.2[2]).

[Archive :February 2026]