Bill C-308: An Act to amend the Employment Insurance Act (improvement of the employment insurance system)

C-308 Second Session, Fortieth Parliament, 57-58 Elizabeth II, 2009 HOUSE OF COMMONS OF CANADA BILL C-308 An Act to amend the Employment Insurance Act (improvement of the employment insurance system) first reading, February 10, 2009 Mr. Lessard 402136 SUMMARY This enactment makes a number of amendments to the Employment Insurance Act. Specifically, it (a) reduces the qualifying period to a minimum of 360 hours of work, regardless of the regional rate of unemployment; (b) increases the benefit period; (c) increases the rate of weekly benefits to 60%; (d) eliminates the distinctions between a new entrant and a re-entrant to the labour force; (e) eliminates the presumption that persons related to each other do not deal with each other at arm’s length; (f) increases the maximum yearly insurable earnings to $42,500 and introduces an indexing formula; and (g) adds a new Part VIII.01 to the Act relating to self-employed persons. Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca 2nd Session, 40th Parliament, 57-58 Elizabeth II, 2009 house of commons of canada BILL C-308 An Act to amend the Employment Insurance Act (improvement of the employment insurance system) 1996, c. 23 Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. Subsection 2(5) of the Employment Insurance Act is replaced by the following: Weeks of benefits paid (5) For the purposes of section 145, the Commission may, with the approval of the Governor in Council, make regulations for establishing how many weeks of benefits a claimant was paid, in order to take into account benefit reductions or deductions in the calculation or payment of those benefits. 2. (1) Subsection 4(1) of the Act is replaced by the following: Maximum yearly insurable earnings 4. (1) For the purposes of subsection 14(1.1), section 17, subsection 82(2) and sections 95 and 145, the maximum yearly insurable earnings is $42,500 (indexed annually) until the amount calculated in accord­ance with subsection (2) for a year, before rounding down under subsection (4), exceeds $42,500 (indexed annually), in which case the maximum yearly insurable earnings for that year is that amount, rounded down under subsection (4). (2) Subsection 4(3) of the Act is replaced by the following: Subsequent years (3) For years subsequent to the year in which the maximum yearly insurable earnings exceeds $42,500 (indexed annually), before rounding down under subsection (4), the maximum yearly insurable earnings is the maximum yearly insurable earnings for the preceding year, before rounding down under subsection (4), multiplied by the ratio that the average for the twelve month period ending on June 30 in that preceding year of the Average Weekly Earnings for each month in that twelve month period bears to the average for the twelve month period ending twelve months prior to June 30 of that preceding year of the Average Weekly Earnings for each month in that twelve month period ending twelve months prior to June 30 of that preceding year. (3) Section 4 of the Act is amended by adding the following after subsection (5): Definition of “$42,500 (indexed annually)” (6) For the purposes of this section, “$42,500 (indexed annually)” means $42,500 indexed annually, beginning in 2009, to the Consumer Price Index published by Statistics Canada under the authority of the Statistics Act. 3. Paragraph 5(3)(b) of the Act is replaced by the following: (b) if the employer is, within the meaning of that Act, related to the employee, they are deemed to deal with each other at arm’s length unless the Minister of National Revenue is satisfied that, having regard to all the circumstances of the employment, including the remuneration paid, the terms and conditions, the duration and the nature and importance of the work performed, it is reasonable to conclude that they would not have entered into a substantially similar contract of employment if they had been dealing with each other at arm’s length. 4. Subsections 7(2) to (5) of the Act are replaced by the following: Qualification requirements (2) An insured person qualifies if the person (a) has had an interruption of earnings from employment; and (b) has had during their qualifying period at least 360 hours of insurable employment. 5. (1) Subsections 7.1(1) and (2) of the Act are replaced by the following: Increase in required hours 7.1 (1) The number of hours that an insured person requires under section 7 to qualify for benefits is increased to the applicable number provided in paragraphs (a) to (d) if the insured person accumulates one or more violations in the 260 weeks before making their initial claim for benefit: (a) 525 hours in the case of one or more minor violations; (b) 630 hours in the case of one or more serious violations; (c) 735 hours in the case of one or more very serious violations; and (d) 850 hours in the case of one or more subsequent violations. (2) Subsection 7.1(3) of the Act is replaced by the following: Limitation (3) A violation may not be taken into account under subsection (1) in more than two initial claims for benefits if the insured person qualified for benefits with the increased number of hours in each of those claims. 6. (1) Subsection 14(1) of the Act is replaced by the following: Rate of weekly benefits 14. (1) The rate of weekly benefits payable to a claimant is 60% of their weekly insurable earnings. (2) Subsection 14(2) of the Act is repealed. (3) Subsections 14(4) and (4.1) of the Act are replaced by the following: Rate calculation period (4) The rate calculation period is the period of 12 weeks, consecutive or not, during which the claimant received earnings greater than any other period of 12 weeks, consecutive or not. 7. Section 17 of the Act is replaced by the following: Maximum rate of weekly benefits 17. The maximum rate of weekly benefits is 60 % of the maximum yearly insurable earnings divided by 52. 8. Paragraph 54(f) of the Act is replaced by the following: (f) determining the amount to be deducted under section 20 from weekly benefits paid if the claimant normally works other than a five day week; 9. The Act is amended by adding the following after section 153: PART VIII.01 SELF-EMPLOYED PERSONS Regulations 153.01 (1) Notwithstanding anything in this Act, the Commission may, with the approval of the Governor in Council, make such regulations as it deems necessary respecting the establishment and operation of a scheme of employment insurance for self-employed persons or classes of self-employed persons. Scheme may be different (2) The scheme established by the regulations may, with respect to any matter, be different from the provisions of this Act relating to that matter. Tabling of regulation (3) The Minister shall table the regulations in the House of Commons within three sitting days after the day on which they are made. Motion to repeal (4) The regulations come into force on the 10th sitting day after the day on which they are tabled, or on any later day specified in the regulations, unless a motion to repeal them, signed by not fewer than 30 members of the House of Commons, is filed with the Speaker of the House of Commons before the 10th sitting day. Consideration (5) If a motion to repeal the regulations is filed with the Speaker of the House of Commons in accordance with subsection (4), it shall be taken up and considered by the House of Commons within five sitting days after the day on which it is filed. Time for disposition of motion (6) The motion shall be taken up after the ordinary hour of daily adjournment, for a period of not more than four hours, and at the end of the debate the Speaker of the House of Commons shall, without delay or further debate or amendment, put every question necessary for the disposition of the motion. Adoption or defeat of motion (7) If the motion is adopted, the regulations are repealed, and if the motion is defeated, the regulations come into force on the day after the day on which the motion is defeated or on any later day specified in the regulations. Regulation repealed (8) The regulations are repealed if Parliament is prorogued or dissolved before the motion is disposed of or, if no motion has been filed, before the end of the period mentioned in subsection (4). Definition of “sitting day” (9) For the purpose of this section, “sitting day” means a day on which the House of Commons is sitting. 10. Schedule I to the Act is replaced by Schedule I set out in the schedule to this Act. SCHEDULE (Section 10) SCHEDULE I (Subsection 12(2)) TABLE OF WEEKS OF BENEFIT Published under authority of the Speaker of the House of CommonsAvailable from:Publishing and Depository ServicesPublic Works and Government Services Canada