Employment Insurance (EI) in Canada

Employment Insurance (EI) in Canada is a benefit available to all individuals earning a living in Canada. Majority of the new immigrants on the Road to Canada have no idea about EI. This benefit is a commitment by the Government of Canada to its working community that they will be cared for if there is a loss of income. Any individual who pays Employment Insurance as part of their earned income is eligible for Employment Insurance (EI) benefit.

Employment Insurance (EI) works the same way as any other insurance. Think of having auto insurance in Ontario or any other province in Canada. If you are in to an accident, your insurance service provider will pay for damages or total loss as incurred. In the case of Employment Insurance (EI), this is a benefit provided federally by the Government of Canada. You pay a premium on your salaries/income towards employment insurance. And if by chance, you lost your job or the job ceased to exist, you will apply for employment insurance through Service Canada.

Loss of Income:

Now, loss of income doesn’t mean that you throw away a good job just so you sit and enjoy the insurance benefits. Loss of income is losing your job through no fault of your own, e.g.:

1. Natural Disaster
2. Business Closure
3. Contract End
4. Termination of Employment
5. Shortage of Work
6. Seasonal or mass lay-offs

You have to be available and able to work to be eligible to apply and receive Employment Insurance (EI) in Canada. Every individual is vetted by Service Canada for loss of income before they are approved.

You are also eligible for Employment Insurance (EI) benefit if you fall under the following criteria:

1. Sickness – If you are unable to work due to illness, injury or quarantine.
2. Maternity of Paternal Leave – If you’re pregnant, have recently given birth, are adopting a child or are caring for a newborn.
3. Caregiver – If you are providing care or support to a critically ill or injured person or someone needing end-of-life care.

Applying for Employment Insurance:

You can apply for EI benefits through Service Canada. Certain requirements have to be fulfilled prior to your EI benefits getting approved. You need to ensure that you fill in the required details in the correct form or your EI benefit can get delayed.

Following data should be available to you when applying for Employment Insurance (EI) in Canada:

1. Social Insurance Number (SIN)
2. Mother’s Maiden Name
3. Residential Address / Mailing Address (If Different)
4. Banking Information – Using Direct Deposit Form or Check
5. Names and Addresses all employers in the last 52 weeks and reasons for leaving
6. Explanation in detail if you were dismissed or you quit a job in the last 52 weeks
7. Dates (Sunday to Saturday) for your highest earning weeks in the last 52 weeks – Use Paystubs or Bank Statement

Record of Employment – Submitted by employer if electronic; should be submitted by employee if in paper format, should be submitted soon after the application is submitted for EI to a Service Canada location or mailed to them. EI will not be issued if this document is not in place and verified.

Applying for Employment Insurance (EI)

You have to apply for EI as soon as you lose your job. If it is a planned application e.g. maternity or paternal leave, apply at least 1 month prior to going on leaves so that EI can setup in time. Employment Insurance (EI) benefit takes time before it is setup and issued. Consider that you will need money to cover your monthly expenses in Canada.  

Main criteria for eligibility:

The main criteria for eligibility during the COVID-19 closures has been reduced to a minimum of 120 insured Hours. Rather than the usual 420 insured hours required to apply for Regular Benefits under Employment Insurance (EI). Government of Canada provides a one-time credit of 300 insured hours to individuals to ensure eligibility accumulating 420 insured hours.

Effective as of September 27, 2020, this will be in effect temporarily until the pandemic has passed.

For the sake of maternity and paternal benefits, total accumulation of a minimum of 120 insured hours is enough. The Government is offering a one-time additional 480 hours to ensure you are eligible and have accumulated 600 insured hours.

Benefits paid out in Employment Insurance (EI):

The benefits vary from individual to individual. You can either calculate on how much you would receive on the website links provided below or you can review the summary of benefits. Check them out below:

1. Regular Benefit
2. Maternity or Paternal Leave Benefit
3. Sickness Benefit

Impact of Employment Insurance (EI):

Employment Insurance (EI) should not be compared with social assistance in Canada which are completely different benefits. Applying for EI does not impact your ability to become a sponsor at a later point in time if you meet the financial income criterions. Sponsoring your parents and grandparents is a separate topic which I would talk about some time soon.

Right to Employment Insurance (EI):

Applying for Employment Insurance (EI) is your right if you are in distress. The benefit is in place to cover individuals who are disadvantaged and cannot work due to conditions beyond their control. Finding a job takes some time but there are so many other ways that you can legally earn money from. View my blog on jobs in Canada to get an idea on the topic.

Again, employment insurance is only available to residents of Canada; who have worked a minimum of 420 insured hours or a minimum of 600 insured hours. This is based on the kind of EI Benefit you are applying to. These have now been reduced to 120. This is due to COVID-19 closures and changes impacting employment. If you wish to apply for Employment Insurance (EI) in Canada, please visit this link.

Stay safe, stay strong and help Canada progress.

“Work hard, work smart and believe in yourself if you wish to succeed and progress. Find solutions rather than focusing on problems.”

Fahad Rafique

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