Agreement No. 7 to amend the Canada-Québec Labour Market Development Agreement in principle

List of acronyms and abbreviations

• Canada: The Government of Canada
• Québec: The Government of Québec
• The Agreement: the Canada-Québec Labour Market Agreement in Principle
• The Implementation Agreement: the Canada-Québec Labour Market Implementation Agreement

Between

The Government of Canada (hereinafter referred to as "Canada"), represented by the Minister of Employment and Social Development styled as the Minister of Families, Children and Social Development and the Canada Employment Insurance Commission

And

The Government of Québec, hereinafter referred to as “Québec”, represented by the Ministre du Travail, de l’Emploi et de la Solidarité sociale and the Ministre responsable des Relations canadiennes et de la Francophonie canadienne.

Hereinafter referred to as “the parties”.

Preamble

• Whereas the Parties entered into the Canada-Québec Labour Market Agreement in Principle (hereinafter “the Agreement”) on April 21, 1997, pursuant to which Canada and Québec agreed on the provisions for implementing active employment measures in Québec funded from the Employment Insurance Account;
• Whereas the Parties concluded the Canada-Québec Labour Market Implementation Agreement (hereinafter “the Implementation Agreement”) on November 28, 1997, in order to implement the Agreement;
• Whereas the Agreement was amended on July 20, 2007, April 30, 2009, August 25, 2014, December 21, 2016, February 23, 2018, March 27, 2019 and July 10, 2019;
• Whereas the Implementation Agreement was amended on July 10, 2019;
• Whereas, in 2017 to 2018 and 2018 to 2019, the Parties had not yet agreed on the necessary amendments to the Agreement and the Implementation Agreement to allow Quebec to receive its share of the additional funding provided for in the 2017 federal budget for those fiscal years;
• Whereas, since the purpose of this investment is to help Quebecers prepare for employment and re-enter the labour market, Canada is prepared to provide Quebec, in 2019 to 2020, its share of the additional funding from Budget 2017 for the contribution applicable to the costs of active employment measures of Quebec for fiscal years 2017 to 2018 and 2018 to 2019 under the Agreement and the Implementation Agreement;
• Now therefore, the Parties agree to amend the Agreement, as amended from time to time, as follows:

Clauses

1. The Agreement is amended with the addition of the following title and clauses after clause 7H:
   • “Contribution towards the costs of Quebec’s active employment measures for fiscal years 2017 to 2018 and 2018 to 2019
   • 7I Despite the provisions contained in clause 7, in each of 2017 to 2018 and 2018 to 2019, the maximum contribution payable under clause 7 for the costs of active employment measures in Quebec is increased by $33,988,481 and $59,868,950 respectively.
   • 7I.1 Despite the provisions of clause 7, Quebec may use up to 10% of the additional contribution payable by Canada for fiscal year 2018 to 2019 under clause 7I for costs related to the administration of active employment measures for fiscal year 2018 to 2019.
   • 7I.2 Canada will make its additional contributions under clause 7I upon the signing of this amending agreement by the Parties.
   • 7I.3 Quebec agrees to identify the use of this additional funding in the audited statement of income and expenses submitted to Canada under the Agreement.”
2. The Parties agree that no part of this amending agreement will have an impact on how Canada allocates the current Employment Insurance funding ($1.95 billion per year) when determining the maximum annual amount of contributions paid to Quebec, in accordance with clause 7.1 of the Agreement. The Parties acknowledge that the current method set out in clause 7.1 of the Agreement for allocating the current $1.95 billion to the provinces and territories is the allocation method described in the letter dated June 26, 1996, from the Deputy Minister of the Department of Human Resources Development Canada to the Secrétaire général associé des Affaires intergouvernementales canadiennes du Québec.
3. In all other respects, the Agreement shall remain unchanged.
4. This amending agreement shall be read together with the Agreement and the Implementation Agreement, as amended from time to time, and shall take effect as if its provisions were part of the Agreement.
5. This amending agreement shall come into force once it has been signed by the Parties.