EI Premium reduction guide Chapter 2: Applying for an EI premium reduction
How do I apply for an EI premium reduction?
To apply for an EI premium reduction, complete the form Application for Employment Insurance Premium Reduction.
What information do I need to send with my application?
With your application, you must include:
- evidence of your formal commitment to provide your employees with a short-term disability plan
- your undertaking to return the employees' portion of the savings
You can also complete and include the form Consent to Contact Insurer (optional).
Evidence of your formal commitment to provide a short-term disability plan
This formal commitment can be any document with details about your short-term disability plan, including:
- a union or association agreement
- an industry-wide trust contract
- a private carrier's insurance policy
- an administrative measure contained in your employees' handbook
- minutes of a Board of Directors' meeting indicating that your employees are provided with a short-term disability plan
- a statement contained in a personnel policy bulletin
- any commitment in writing to your employees
The formal commitment must include a complete description of the benefits provided under your short-term disability plan.
Your undertaking to return the employees' portion of the savings
You must provide evidence that the employees to whom the premium reduction applies will benefit from the premium reduction in an amount equal to at least 5/12 of the savings.
Acceptable methods for returning the savings include:
- a cash remittance
- new employee benefits that you provide to your employees as a result of the premium reduction, such as a dental plan, a group life insurance, free beverages or free social activities
- increased employee benefits or upgrading of existing benefits, such as more holidays or more time off work
Note: You can only use benefits already included in a collective agreement if you and the union have a written agreement on this matter.
You can provide us with details about your method for returning 5/12 of the savings by completing the appropriate section of the form Application for Employment Insurance Premium Reduction.
If you have different methods for returning 5/12 of the savings for separate groups of employees, you must provide the details about the method you use for each group.
If you and your employees have signed a mutual agreement on how you will return the employee's portion of the savings, please include it with your application. Below is an example of the format you may use for such an agreement.
(company letterhead)
Date
This is an arrangement between (name of employer) and (group of employees).
If (name of employer) is granted an EI premium reduction, the employees' portion of the savings will be returned as follows:
Signature of employer
Signature of employee representative
Consent to Contact Insurer form (optional)
Complete the Consent to Contact Insurer form to authorize Service Canada to contact your insurer or plan administrator to obtain and clarify information about your short-term disability plan for the EI Premium Reduction Program.
Where do I send my application?
You can submit your application with the required documents:
- online by using the Employment Insurance Premium Reduction Web Portal
- by mail to the address indicated in Chapter 7
- in person by visiting a Service Canada Office
When can I apply for an EI premium reduction?
You can apply for an EI premium reduction at any time.
What is the effective date of the EI premium reduction?
If your short-term disability plan meets all the requirements on the date of your initial application, we will determine the effective date of the EI premium reduction as follows:
- if you send the application on or before the 15th of the month, the effective date of the premium reduction is the first day of the following month. Example: If you send us your initial application on June 10, the effective date of the EI premium reduction is July 1
- if you send the application on or after the 16th of the month, the effective date of the premium reduction is the first day of the second following month. Example: If you send your initial application on February 23, the effective date of the EI premium reduction is April 1
What if some of my documents are missing when I apply?
Submit your application with any documents that you can provide. We will contact you to request any missing documentation required when we assess your application. The missing documentation must be provided within 30 days after our request is made.
What if my plan does not meet all the requirements when I apply?
If your short-term disability plan does not meet all the requirements on the date you submit your initial application, we will send you a non-entitlement decision letter. The letter will include the reasons you do not meet the requirements for receiving a premium reduction. If you disagree with the decision, you have the right to appeal within 1 year of the date we issue the decision notice to you.
If you decide to modify your plan so that it meets all the requirements, you will need to resubmit an Application for Employment Insurance Premium Reduction with a copy of your revised plan.