Knowing Your Rights – Temporary Changes to EI
Given the current economic climate, employees have justifiable concerns about their job security. In response, the Government of Canada has initiated a six-month pilot project introducing temporary changes to Employment Insurance (EI) benefits. These temporary changes are: (1) the waiver of the one-week waiting period for all EI claims; (2) the suspension of the allocation rules regarding separation-related payments made to employees; and (3) the artificial adjustment of unemployment rates.
Waiver of Waiting Period
Ordinarily, workers who qualify for any type of EI benefit are subject to a one-week waiting period where they do not receive benefits.
Under the temporary changes, the waiting period will be waived on all initial claims that start between March 30, 2025 and October 11, 2025. This measure applies to all types of EI benefits including regular benefits as well as special benefits such as parental and sickness benefits.
Suspension of Allocation Rules
An individual applying for EI may receive payment from their former employer as compensation for the loss of their employment such as severance or vacation pay. Ordinarily, these payments are allocated as “earnings” and are deducted from an employee’s EI benefits.
However, under the temporary measures, these allocations have been suspended for EI claims with a benefit period that begins on or after March 30, 2025 but no later than October 11, 2025 or to claims where the first week that monies on separation would normally be allocated falls during this period.
This temporary relief measure means that employees who lose their jobs or are laid off between March 30, 2025 to October 11, 2025 will not face a reduction in benefits or an obligation to repay benefits already paid because they received payments from their employer upon separation.
Temporary Increases to Unemployment Rates
Eligibility for EI depends on a number of factors, including having worked the required number of hours (known as “insurable hours”) in the 52-week period before your application for EI (known as the “qualifying period”). The unemployment rate in the region where a worker normally lives determines the total number of insurable hours needed to qualify for regular benefits.
From April 6, 2025 to July 12, 2025, the temporary measures will boost the unemployment rates in most economic regions by 1%. This may result in a decrease to the number of insurable hours needed to qualify for regular benefits, an increase to the length of time regular benefits may be paid (up to four weeks), and a higher weekly benefit rate for all benefit types (up to a maximum of $695). Workers can look up their Economic Region by Postal Code in order to find out the number of insured hours they need to qualify for regular benefits. For example, for the period of April 6, 2025 to May 10, 2025, the unemployment rate in the economic region of Toronto is 9.6% and the number of insurable hours required to qualify for regular benefits is 560.
The impact of these temporary measures will vary on factors such as the type of EI benefit applied for. As always, employees should not delay in applying for EI regular benefits following a separation of employment. If you have questions about how these temporary measures may impact your EI claim, it is best to contact a lawyer or other professional with expertise in EI issues.
More information: https://www.canada.ca/en/services/benefits/ei/temporary-measures-for-major-economic-conditions.html
This is legal information and not legal advice. If you require further information or advice, please call our Intake Line at 416-441-1764 ext. 1.