How do temporary Employment Insurance changes help if I lose my job?
Question: How do temporary Employment Insurance changes help if I lose my job?
Answer: Losing your job can be incredibly stressful. Fortunately, the Government of Canada has introduced temporary EI changes (effective March 30, 2025) to help workers get support faster. These measures are part of a broader response to the impact of U.S. tariffs.
Here’s how these expanded measures support workers:
Immediate EI benefits despite severance pay: In general, workers who receive severance pay, pay in lieu, closure bonuses, vacation payouts and/or sick credits (hereinafter separation pay) as a result of a job loss have to wait until these payments are fully used up before receiving regular EI benefits. In other words, all earnings paid or payable because of a lay off or separation are usually deemed to start the week of the lay off or separation, based on the normal weekly earnings for that employment, no matter when the “earnings” are supposed to be paid or payable.
- Under the temporary EI measures effective from March 30 to Oct. 11, the government is temporarily excluding the above-noted separation pay from the definition of earnings. This means you can start receiving EI payments right away, even if you’ve negotiated or will receive separation pay immediately following your separation. This is the case as long as either: your EI benefit period begins between March 30 and Oct. 11, 2025 window, or the separation pay earnings would have otherwise been normally deemed (or allocated) by Service Canada to a period whose first week falls inside the temporary window.
- In other words, if the very first hypothetical week to which Service Canada would have assigned the separation pay is inside the temporary window, the whole severance should avoid triggering normal EI rules, even if the rest of the weeks extend beyond Oct. 11. As a result, workers facing layoffs or dismissals should seek employment law advice about how to structure the terms of your package or settlement before signing.
Elimination of waiting period: Typically, EI claims include a mandatory one-week waiting period without payment. Temporarily, this waiting period has been waived, allowing workers to access benefits immediately upon job loss.
Easier eligibility and extended benefits: The hours required to qualify for EI vary by region, but they have been lowered across the board at least until July 12. Additionally, the maximum duration of EI benefits has been increased by up to four weeks, offering longer financial support during your job search
Key considerations for employers
Employers facing economic impacts from U.S. tariffs may also benefit from new measures, including the temporarily expanded work-sharing program. This allows businesses to avoid layoffs by reducing employee hours, with EI benefits covering a portion of lost wages. Employers should get legal advice if they are considering these measures or considering layoffs to look at the best strategies for their situation. For more details, visit Temporary EI Measures.
If you have any questions, please feel free to contact me at wjamieson@rossmcbride.com or directly at 905-572-5806.
This article was originally published by The Hamilton Spectator.
