Bill C-418: An Act to amend the Employment Insurance Act (accessibility and other measures)

1996, c. 23 Employment Insurance Act 1 Subsections 4(1) to (4) of the Employment Insurance Act are 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 for the year 2023 is $ 86,100 . Subsequent years (2) For years subsequent to the year 2023 , the maximum yearly insurable earnings is the maximum yearly insurable earnings for the preceding year, before rounding down under subsection ( 3 ), multiplied by the ratio that the average for the 12-month period ending on April 30 in that preceding year of the Average Weekly Earnings for each month in that 12-month period bears to the average for the 12-month period ending 12 months prior to April 30 of that preceding year of the Average Weekly Earnings for each month in that 12-month period ending 12 months prior to April 30 of that preceding year. Rounding down (3) If the amount calculated in accordance with subsection (2) is not a multiple of one hundred dollars, the amount of the maximum yearly insurable earnings is rounded down to the nearest multiple of one hundred dollars. 2 (1) The definition disentitled in subsection 6(1) of the Act is replaced by the following: disentitled  means not entitled under section 18, 21, 31, 32, 33, 36, 37, 49 or 50 or under the regulations; ( inadmissible ) (2) The definitions major attachment claimant , minor attachment claimant and waiting period in subsection 6(1) of the Act are repealed. 3 (1) Paragraph 7(2)(b) of the Act is replaced by the following: (b) has had during their qualifying period (i) at least 420 hours of insurable employment, or (ii) at least 14 hours of insurable employment per week for 12 weeks. (2) The table in subsection 7(2) of the Act is repealed. 4 (1) Subsection 7.1(1) of the Act is replaced by the following: Increase in required hours 7.1 (1) The number of hours of insurable employment that an insured person requires under subparagraph 7(2)(b)(i) or the number of weeks of insurable employment an insured person requires under subparagraph 7(2)(b)(ii), as the case may be , if the insured person accumulates one or more violations in the 260 weeks before making their initial claim for benefits, is increased to the number set out in the following tables . (2) The table in subsection 7.1(1) of the Act is replaced by the following: Table 1 – Number of Hours / Tableau 1 – Nombre d’heures Violation Subparagraph 7(2)(b)(i) / Sous- alinéa 7(2)b)(i) minor / mineure serious / grave very serious / très grave subsequent  / subséquente 525 630 735 840 Table 2 – Number of Weeks / Tableau 2 – Nombre de semaines Violation Subparagraph 7(2)(b)(ii) / Sous- alinéa 7(2)b)(ii) minor / mineure serious / grave very serious / très grave subsequent  / subséquente 15 18 21 24 5 (1) Subsection 8(2) of the Act is amended by adding the following after paragraph (a): (a.1) unavailable for work because of a parental leave; (2) Subsection 8(5) of the Act is repealed. 6 Subsection 10(13.02) of the Act is replaced by the following: Extension of benefit period — regular and special benefits (13.02) If, during a claimant’s benefit period, regular benefits were paid, benefits were paid for the reason mentioned in paragraph 12(3)(b) in the case where the applicable maximum number of weeks is established under subparagraph 12(3)(b)(ii), and benefits were paid for fewer than the total number of weeks for which benefits may be paid , the benefit period is extended so that benefits may be paid up to that total number of weeks. The extension must not exceed 26 weeks. 7 (1) The portion of subsection 12(2.3) of the Act before paragraph (a) is replaced by the following: General maximum — exception for seasonal workers (2.3) Despite subsection (2), the maximum number of weeks for which benefits may be paid in a benefit period to a claimant because of a reason other than those mentioned in subsection (3) shall be determined by reference to the regional rate of unemployment that applies to the claimant and the number of hours of insurable employment of the claimant in their qualifying period if (2) Paragraph 12(3)(c) of the Act is replaced by the following: (c) because of a prescribed illness, injury or quarantine is 50 ; (3) Subsections 12(6) and (7) of the Act are repealed. 8 Sections 13 and 13.1 of the Act are repealed. 9 (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, or 33% of their weekly insurable earnings for the weeks for which the claimant is paid benefits under section 23 in the case where the applicable maximum number of weeks is established under subparagraph 12(3)(b)(ii). (2) Subsection 14(2) of the Act is replaced by the following: Weekly insurable earnings (2) A claimant’s weekly insurable earnings are their insurable earnings in the period of 12 consecutive or non-consecutive weeks during their qualifying period for which they received the highest insurable earnings . (3) The table in subsection 14(2) of the Act is repealed. (4) Subsection 14(4) of the Act is repealed. 10 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. 11 (1) Subsection 18(1) of the Act is amended by striking out “or” at the end of paragraph (b) and by adding the following after that paragraph: (b.1) unable to work because the claimant returned to education and would otherwise have been available for work; or (2) Section 18 of the Act is amended by adding the following after subsection (2): Exception (3) A claimant to whom benefits are payable under any of sections 23 to 23.3 is not disentitled under paragraph (1)(b.1) for failing to prove that he or she would have been available for work were it not for the return to education. 12 Subsection 19(1) of the Act is repealed. 13 Section 20 of the Act is repealed. 14 Subsection 22(4) of the Act is repealed. 15 (1) Subsection 23(1.3) of the Act is replaced by the following: First to elect (1.3) If two claimants each make a claim for benefits under this section — or if one makes a claim for benefits under this section and an individual makes a claim for benefits under section 152.05 — in respect of the same child or children, the election made under subsection (1.1) or 152.05(1.1) by the first claimant or individual, as the case may be, to make a claim for benefits under this section or under section 152.05 is binding on both claimants or on the claimant and the individual. (2) Subsection 23(3.22) of the Act is replaced by the following: Extension of period — regular and special benefits (3.22) If, during a claimant’s benefit period, regular benefits were paid, benefits were paid for the reason mentioned in paragraph 12(3)(b) in the case where the applicable maximum number of weeks is established under subparagraph 12(3)(b)(ii), and benefits were paid for fewer than the total number of weeks for which benefits may be paid , the period referred to in subsection (2) is extended for the same number of weeks as the extension established under subsection 10(13.02). (3) Subsection 23(4) of the Act is replaced by the following: Division of weeks of benefits (4) If two claimants each make a claim for benefits under this section — or if one claimant makes a claim for benefits under this section and an individual makes a claim for benefits under section 152.05 — in respect of the same child or children, the weeks of benefits payable under this section, under section 152.05 or under both those sections may be divided between them up to a maximum of 40, if the maximum number of weeks that has been elected under subsection (1.1) or 152.05(1.1) is established under subparagraph 12(3)(b)(i) or 152.14(1)(b)(i), or up to a maximum of 69, if that number of weeks is established under subparagraph 12(3)(b)(ii) or 152.14(1)(b)(ii). If they cannot agree, the weeks of benefits are to be divided in accordance with the prescribed rules. (4) Subsections 23(5) and (6) of the Act are repealed. 16 Subsection 23.1(7) of the Act is repealed. 17 Subsection 23.2(6) of the Act is repealed. 18 Subsection 23.3(5) of the Act is repealed. 19 Subsection 24(1) of the Act is amended by adding “and” at the end of paragraph (g) and by repealing paragraph (h). 20 (1) Subsection 28(1) of the Act is replaced by the following: Duration of disqualification 28 (1) A disqualification under section 27 is for the number of weeks that the Commission may determine, but the number of weeks of a disqualification arising under any of paragraphs 27(1)(a) to (d) or subsection 27(1.1) shall not be more than six. (2) Subsection 28(2) of the Act is repealed. (3) Subsection 28(4) of the Act is replaced by the following: Limitation (4) No weeks of disqualification that have not been served when the claimant’s benefit period ends shall be carried forward against the claimant. (4) Subsection 28(7) of the Act is replaced by the following: Exception (7) Subsection (6) does not apply to prevent a claimant from requesting that a benefit period established for the claimant be cancelled under subsection 10(6) and that a benefit period be established for the claimant to enable the claimant to receive special benefits. 21 (1) Paragraph 29(c) of the Act is amended by adding the following after subparagraph (i): (i.1) domestic violence, (2) Subparagraph 29(c)(v) of the Act is replaced by the following: (v) obligation to care for a child or a member of the immediate family or to assume parental responsibilities , (3) Paragraph 29(c) of the Act is amended by adding the following after subparagraph (vi): (vi.1) return to education, 22 (1) Paragraph 30(1)(a) of the Act is replaced by the following: (a) the claimant has, since losing or leaving the employment, been employed in insurable employment for the number of hours required by subparagraph 7(2)(b)(i) or the number of weeks required by subparagraph 7(2)(b)(ii), as the case may be , to qualify to receive benefits; or (2) Subsection 30(2) of the Act is replaced by the following: Length of disqualification (2) The disqualification is to be no more than six weeks in length and, for greater certainty, the length of the disqualification is not affected by any subsequent loss of employment by the claimant during the benefit period. 23 Subsection 42(2) of the Act is replaced by the following: Exception — recovery of amounts payable (2) Any amounts payable under this Act by any person and required to be credited to the Employment Insurance Fund may be recovered out of any benefits payable to that person, without affecting any other mode of recovery. 24 (1) Paragraph 54(a) of the Act is repealed. (2) Paragraph 54(f) of the Act is repealed. (3) Paragraph 54(f.6) of the Act is repealed. 25 Subsection 66(1) of the Act is replaced by the following: Annual premium rate setting 66 (1) Subject to subsection (7) and section 66.32, the Commission shall set the premium rate for each year in order to generate just enough premium revenue to ensure that, at the end of the seven-year period that commences at the beginning of that year, the total of the amounts credited to the Employment Insurance Fund after December 31, 2008 is equal to the total of the amounts charged to that Fund after that date. 26 Paragraph 66.1(1)(c) of the Act is replaced by the following: (c) the total of the amounts charged to the Employment Insurance Fund as of the last day of the most recent month for which that total is known by the Minister; and 27 Section 70.2 of the Act and the heading before it are replaced by the following: Employment Insurance Fund Establishment 70. 2 There is established an Employment Insurance Fund, to be administered by the Canada Employment Insurance Commission. 28 The portion of section 72 of the Act before paragraph (a) is replaced by the following: Payment into Employment Insurance Fund 72 There shall be paid into the Employment Insurance Fund 29 The portion of section 73 of the Act before paragraph (a) is replaced by the following: Credits to Employment Insurance Fund 73 There shall be credited to the Employment Insurance Fund and charged to the Consolidated Revenue Fund 30 Section 74 of the Act is replaced by the following: Government premiums 74 There shall be credited to the Employment Insurance Fund and charged to the Consolidated Revenue Fund an amount equal to the premiums required to be paid by His Majesty in right of Canada as employer’s premiums for persons employed in insurable employment by His Majesty in right of Canada. 31 The portion of section 75 of the Act before paragraph (a) is replaced by the following: Other credits to Employment Insurance Fund 75 There shall be credited to the Employment Insurance Fund all amounts paid into the Consolidated Revenue Fund that are 32 (1) The portion of section 77 of the Act before paragraph (b) is replaced by the following: Charges to Fund 77 (1) There shall be paid out of the Employment Insurance Fund (a) all amounts paid as or on account of benefits under this Act, other than special benefits ; (2) Section 77 of the Act is amended by adding the following after subsection (1): Special benefits (1.1) There shall be paid out of the Consolidated Revenue Fund all amounts paid as or on account of special benefits under this Act. 33 Paragraphs 77.1(a) and (b) of the Act are replaced by the following: (a) the Minister of Finance shall (i) forecast the amount to be credited to the Employment Insurance Fund under sections 73 to 75 during the year, (ii) forecast the amount to be charged, during the year, to that Fund under subsection 77(1) based on, among other things, information provided by the Minister, and (iii) estimate the total, at December 31 of the immediately preceding year, of the amounts credited to that Fund ; and (b) the Minister shall estimate the total, at December 31 of the immediately preceding year, of the amounts charged to that Fund . 34 Section 78 of the Act is replaced by the following: Maximum amount that may be paid under Part II 78 The total amount that may be paid out by the Commission under section 61 and paragraph 63(1)(a) and charged to the Employment Insurance Fund under this Part in a fiscal year must not exceed 0.8% of the insurable earnings of all insured persons from which the prescribed amount is deducted under subsection 82(1) in that year as or on account of employee’s premiums, as estimated by the Commission and set out in the Main Estimates tabled in Parliament. 35 Paragraph 152.14(1)(c) of the Act is replaced by the following: (c) because of a prescribed illness, injury or quarantine is 50 ; 36 The portion of paragraph 153.2(2)(a) of the Act before subparagraph (i) is replaced by the following: (a) the making of any financial adjustments and for the crediting or charging of the amount of any of those adjustments to the Employment Insurance Fund , including 37 Paragraph 153.5(2)(c) of the Act is amended by adding “or” at the end of subparagraph (i) and by repealing subparagraph (iii). 38 Section 153.111 of the Act and the heading before it are repealed. 39 The definition waiting period in section 153.15 of the Act is replaced by the following: waiting period  has, in respect of benefits under Part VII.1, the same meaning as in subsection 152.01(1). ( délai de carence ) 40 Section 153.171 of the Act is replaced by the following: Benefits 153. 171 A claimant who qualifies to receive benefits under section 7 and who received the additional 300 hours of insurable employment under paragraph 153.17(1)(b) may make a claim for benefits under sections 21 to 23.3. 41 Subsections 153.191(1) and (1.1) of the Act are replaced by the following: Waiver 153.191 (1) Despite section 152.15, a claimant need not serve a waiting period if the claim is in respect of benefits under Part I, VII.1 or VIII and the benefit period begins on or before October 25, 2020. Suspension of waiting period (1.1) Despite section 152.15, a claimant who receives benefits under section 21 or 152.03 need not serve a waiting period. 42 Subsection 153.192(1) of the Act is replaced by the following: Weekly insurable earnings 153.192 (1) Despite subsection 14(2), the weekly insurable earnings of a claimant whose benefit period begins on or after September 27, 2020 are deemed to be $909. 43 Subsection 153.197(1) of the Act is replaced by the following: Weekly insurable earnings 153.197 (1) Despite subsection 14(2), the weekly insurable earnings of a claimant whose benefit period begins during the period beginning on September 26, 2021 and ending on November 20, 2021 are deemed to be $545. 44 Schedule I to the Act is replaced by the Schedule I set out in the schedule to this Act. 45 Schedule II to the Act is repealed. 46 Schedules IV and V to the Act are repealed. Terminology 47 The Act is amended by replacing every reference to “major attachment claimant” and “minor attachment claimant” with a reference to “claimant” in the following provisions: (a) subsection 12(8); (b) subsection 21(1); (c) subsections 22(1), (2) and (5); (d) subsections 23(1), (4.1), (5) and (6); (e) subsection 23.1(2); (f) subsection 23.2(1); and (g) subsection 23.3(1). Transitional Provisions Account closed 48 The account in the accounts of Canada known as the Employment Insurance Operating Account is deemed to have been closed at the beginning of January 1, 2025 and removed from the accounts of Canada at that time. Section 77 49 For greater certainty, any amount purporting to have been credited to the Employment Insurance Operating Account on or after January 1, 2025 and charged to the Consolidated Revenue Fund under section 77 of the Employment Insurance Act is deemed to have never been credited to that Account and charged to that Fund. Amounts credited and charged 50 For greater certainty, all amounts credited or charged to the Employment Insurance Operating Account on or after January 1, 2025 are deemed to have been credited or charged, as the case may be, to the Employment Insurance Fund established by section 70.2 of the Employment Insurance Act , as enacted by section 27. Appropriation Acts 51 Every authority in any appropriation Act to make recoverable expenditures on behalf of the Employment Insurance Operating Account in respect of the fiscal year 2026–2027 is deemed to be an authority to make recoverable expenditures on behalf of the Employment Insurance Fund established by section 70.2 of the Employment Insurance Act , as enacted by section 27. Employment Insurance Fund — audit for fiscal year 2024–2025 52 The Auditor General of Canada shall audit the Employment Insurance Fund, established by section 70.2 of the Employment Insurance Act , as enacted by section 27, in respect of the fiscal year 2024–2025, and a report of that audit shall be made to the Minister of Employment and Social Development. Employment Insurance Operating Account — re-audit 53 Despite section 48, and as a consequence of the establishment of the Employment Insurance Fund by section 70.2 of the Employment Insurance Act , as enacted by section 27, the Auditor General of Canada may re-audit the Employment Insurance Operating Account in respect of any fiscal year if they consider it necessary to do so, and a report of that audit is to be made to the Minister of Employment and Social Development. Consequential Amendment 2005, c. 34; 2013, c. 40, s. 205 Department of Employment and Social Development Act 54 Section 29 of the Department of Employment and Social Development Act is replaced by the following: Audit by Auditor General 29 The Auditor General of Canada shall annually audit the accounts and financial transactions of the Commission for the previous fiscal year. The Auditor General shall also audit the Employment Insurance Fund established by section 70.2 of the Employment Insurance Act , and a report of that audit shall be made to the Minister. Coming into Force January 1, 2025 55 Sections 23, 25 to 34, 36, 38 and 54 come into force or are deemed to have come into force on January 1, 2025.