Employment Insurance Act

The Employment Insurance Act (EI Act) provides temporary income support to unemployed Canadians who have lost their jobs through no fault of their own and meet eligibility requirements. The Act also provides special benefits for sickness, maternity, parental and caregiving leave. The EI program is funded by contributions from employees and employers, with the rate set annually by the Canada Employment Insurance Commission. The Act establishes eligibility criteria (minimum insurable hours), benefit rates (55% of average insurable earnings, up to maximum), benefit duration (14 to 45 weeks based on regional unemployment rate), and the Employment Insurance Commission. The Act also provides for employment benefits and support measures (training, job creation, self-employment assistance) under Part II.

Legal area: Social welfare law provides the statutory framework for income support, pensions, and social security benefits.

Year enacted: 1996

Full text: https://laws-lois.justice.gc.ca/eng/acts/E-5.6/

Key Provisions

• Section 7: Eligibility (qualifying hours of insurable employment)
• Section 14: Benefit rate (55% of average weekly insurable earnings)
• Section 15: Maximum benefit (set annually, $668 per week in 2024)
• Part I, Division II: Special benefits (sickness, maternity, parental, caregiving)
• Section 22: Maternity benefits (up to 15 weeks)
• Section 23: Parental benefits (up to 35 or 61 weeks, standard or extended)
• Section 30: Disentitlement (voluntary leaving, misconduct, refusal of work)
• Part II: Employment benefits and support measures (training, skills development)

Significance

The EI Act is a critical component of Canada’s social safety net, providing income support to over 1.5 million Canadians annually. The Act was significantly reformed in 2012 (reduced eligibility for frequent claimants, stricter work refusal rules) and in 2021 (extended sickness benefits, expanded eligibility for seasonal workers). The COVID-19 pandemic led to the temporary Canada Emergency Response Benefit (CERB) outside the EI system, followed by permanent EI reforms in 2022 including a simplified eligibility threshold of 420 hours for regular benefits.