Digest of Benefit Entitlement Principles Chapter 25 - Section 7
25.7.0 Earnings
Whether or not specific monies are considered earnings for the purposes of paying EI benefits is determined according to EIR 35; how these monies are allocated is set out in EIR 36. Detailed information regarding identifying and allocating earnings for benefit purposes is available in chapter 5 of this Digest. There are no special provisions for Work-Sharing claims, regarding the definition and allocation of earnings that are not from the Work-Sharing employer. Therefore, the provisions of EIR 35 and 36 apply to all other earnings. In a non-Work-Sharing week, earnings are deducted in accordance with the rules that govern the type of benefits requested.
In a week of Work-Sharing, earnings from the Work-Sharing employer are subject to special consideration (EIR 47). However, if a claimant receives earnings that do no arise from the Work-Sharing employment, including earnings from another employer, these earnings are deducted from the Work-Sharing benefits in that week.
25.7.1 General treatment of earnings on a Work-Sharing claim
Earnings that arise from the Work-Sharing employment are not deducted in any week in which a claimant is entitled to Work-Sharing benefits. This prevents earned income from the Work-Sharing employment from reducing EI benefits. Only earnings received from outside the Work-Sharing employment are deducted from a week in which the claimant is entitled to Work-Sharing benefits.
For example, a claimant works 3 hours in a week of Work-Sharing, and is also paid vacation pay of $500 from the Work-Sharing employer during that week. This is a Work-Sharing week as the claimant has worked the minimum of one half hour during that week. The vacation pay constitutes earnings received from Work-Sharing employment and is therefore not deducted from Work-Sharing benefits (EIR 47(1)). If the claimant had not performed any work during that week, the $500 vacation pay would have been allocated pursuant to EIR 36(8), and if benefits were paid, the week would have been considered a week of regular benefits.
25.7.2 Earnings in a week of Work-Sharing
EIR 47 sets out the rules for:
- earnings from the Work-Sharing employer, and
- earnings from any other employer when the week is a week of Work-Sharing
It is important to remember that the definition of a week of Work-Sharing as defined in section 25.5.1 of this digest, must be met before any week can be considered a week of Work-Sharing. Any week that does not meet that definition, even if the Work-Sharing agreement remains active, becomes a week of regular or special benefits (Digest 5).
25.7.2.1 Earnings from the Work-Sharing employment
If the week is a week of Work-Sharing, there is no deduction for any earnings that arise from the Work-Sharing employment.
The term “earnings” is not restricted to wages. Other monies may be allocated to a week of Work-Sharing, including, but not restricted to: vacation pay, statutory holiday pay, bonuses, shift premiums, a pay-out of overtime or compensatory pay without time taken, or any other monies the Work-Sharing employer may owe outside of normal wages for work performed. As long as the week is a week of Work-Sharing and the monies arise from the Work-Sharing employment, they will not be deducted from the Work-Sharing benefits.
Earnings paid by the Work-Sharing employer do not always arise from the Work-Sharing employment. For example, an employee may retire and start receiving a pension from the Work-Sharing employer and then return to work with the same employer under the Work-Sharing agreement. Even though the pension is paid by the Work-Sharing employer, entitlement to that pension does not arise because of the Work-Sharing employment. Pension is earned over the entire course of an employment and cannot be said to arise from the Work-Sharing employment, therefore will be allocated pursuant to EIR 36(14).
25.7.2.2 Earnings from other employment or sources
Claimants often have more than 1 job. In these cases, earnings from the second employment are deducted from any Work-Sharing benefits payable in that week, subject to the working while on claim provisions (Digest 1.9.7), unless the claimant is participating in more than 1 Work-Sharing agreement.
A claimant may be participating in more than 1 Work-Sharing agreement, but can only be paid Work-Sharing benefits under 1 agreement. However, as any earnings from the second employer are considered earnings from a Work-Sharing employer, they are not deducted from benefits for that week. Although the earnings are not deducted from benefits from either Work-Sharing employer, the claimant is only paid for hours missed under 1 of the Work-Sharing agreements.
25.7.3 Earnings in a non-Work-Sharing week
When a week does not meet the definition of a week of Work-Sharing, it becomes a week of regular or special benefits (EIA 12). All earnings, whether arising from the Work-Sharing employment or another employment are subject to the working while on claim provisions, and deducted from the benefits payable in that week.
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