Regulations Amending the Employment Insurance Regulations: SOR/2019-58

Canada Gazette, Part II, Volume 153, Number 6

Registration

SOR/2019-58 March 4, 2019

EMPLOYMENT INSURANCE ACT

P.C. 2019-129 February 28, 2019

RESOLUTION

The Canada Employment Insurance Commission, pursuant to sections 54 ^{footnote a}, 69 ^{footnote b} and 153.2 ^{footnote c} of the Employment Insurance Act ^{footnote d}, makes the annexed Regulations Amending the Employment Insurance Regulations.

Gatineau, February 4, 2019

Graham Flack
Chairperson, Canada Employment Insurance Commission

Her Excellency the Governor General in Council, on the recommendation of the Minister of Employment and Social Development, pursuant to sections 54 ^{footnote a}, 69 ^{footnote b} and 153.2 ^{footnote c}of the Employment Insurance Act ^{footnote d}, approves the annexed Regulations Amending the Employment Insurance Regulations made by the Canada Employment Insurance Commission.

Regulations Amending the Employment Insurance Regulations

Amendments

1 (1) Paragraphs 76.21(3)(a) and (b) of the Employment Insurance Regulations ^{footnote 1} are replaced by the following:

• (a) in the case of a claimant who has, under subsection 23(1.1) of the Act, elected to receive benefits for the maximum number of weeks referred to in subparagraph 12(3)(b)(i) of the Act, the maximum number of weeks referred to in subparagraph 12(4)(b)(i) of the Act when the weeks of benefits are divided, less the number of weeks of provincial benefits that are paid to the provincial applicant, taking into account any weeks of provincial benefits that are paid at the accelerated rate referred to in subsection 76.19(2), if applicable; and
• (b) in the case of a claimant who has, under subsection 23(1.1) of the Act, elected to receive benefits for the maximum number of weeks referred to in subparagraph 12(3)(b)(ii) of the Act, the number of weeks, rounded down to the nearest whole number, determined by the following formula:

(A – B) x C/D

where:

• A is the maximum number of weeks referred to in subparagraph 12(4)(b)(i) of the Act when the weeks of benefits are divided;

• B is the number of weeks of provincial benefits that are paid to the provincial applicant, taking into account any weeks of provincial benefits that are paid at the accelerated rate referred to in subsection 76.19(2), if applicable;

• C is the maximum number of weeks referred to in subparagraph 12(3)(b)(ii) of the Act; and

• D is the maximum number of weeks referred to in subparagraph 12(3)(b)(i) of the Act.

(2) Section 76.21 of the Regulations is amended by adding the following after subsection (3):

(4) The maximum number of weeks for which benefits may be paid to a claimant under subsection (3) is the maximum number of weeks established under subparagraph 12(3)(b)(i) or (ii) of the Act, in accordance with the election made under subsection 23(1.1) of the Act.

2 (1) Paragraphs 76.42(3)(a) and (b) of the Regulations are replaced by the following:

• (a) in the case of a self-employed person who has, under subsection 152.05(1.1) of the Act, elected to receive benefits for the maximum number of weeks referred to in subparagraph 152.14(1)(b)(i) of the Act, the maximum number of weeks referred to in subparagraph 152.14(2)(b)(i) of the Act when the weeks of benefits are divided, less the number of weeks of provincial benefits that are paid to the provincial applicant, taking into account any weeks of provincial benefits that are paid at the accelerated rate referred to in subsection 76.4(3), if applicable; and
• (b) in the case of a self-employed person who has, under subsection 152.05(1.1) of the Act, elected to receive benefits for the maximum number of weeks referred to in subparagraph 152.14(1)(b)(ii) of the Act, the number of weeks, rounded down to the nearest whole number, determined by the following formula:

(A – B) x C/D

where

• A is the maximum number of weeks referred to in subparagraph 152.14(2)(b)(i) of the Act when the weeks of benefits are divided;

• B is the number of weeks of provincial benefits that are paid to the provincial applicant, taking into account any weeks of provincial benefits that are paid at the accelerated rate referred to in subsection 76.4(3), if applicable;

• C is the maximum number of weeks referred to in subparagraph 152.14(1)(b)(ii) of the Act; and

• D is the maximum number of weeks referred to in subparagraph 152.14(1)(b)(i) of the Act.

(2) Section 76.42 of the Regulations is amended by adding the following after subsection (3):

(4) The maximum number of weeks for which benefits may be paid to a claimant under subsection (3) is the maximum number of weeks established under subparagraph 152.14(1)(b)(i) or (ii) of the Act, in accordance with the election made under subsection 152.05(1.1) of the Act.

Coming into Force

3 These Regulations come into force on the day on which section 303 of A Second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, chapter 27 of the Statutes of Canada, 2018, comes into force, but if they are registered after that day, they come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

Regulatory amendments to the Employment Insurance Regulations (EI Regulations) are required to ensure that the Employment Insurance (EI) parental sharing benefit measure fully achieves its objective.

Background

EI parental benefits are intended to provide temporary income support to eligible parents who take time away from work to care for their newborn or newly adopted child or children. Parental benefits are payable to EI-eligible birth and adoptive parents, opposite-sex and same-sex parents. They can be shared among parents who can access the benefits at the same time or one after another. Parents can choose between standard or extended parental benefits. Standard benefits provide up to 35 weeks of income support paid at 55% of average weekly earnings over the 52-week (12 months) period following the week of childbirth or placement for adoption. The extended parental benefits provide up to 61 weeks of income support paid at 33% of average weekly earnings over the 78-week (18 months) period following the week of childbirth or placement for adoption.

The Employment Insurance Act (EI Act) provides that, if the Government of Canada has entered into an agreement with a province in respect of a provincial law that has the effect of reducing or eliminating special benefits, or benefits under Part VII.1, payable as described in subsection 69(2), the Canada Employment Insurance Commission may, with the approval of the Governor in Council, for the purposes of implementing the agreement and taking into account the application or effect of the provincial law, make any regulations it considers necessary, including regulations respecting the manner in which and the extent to which any provision of the EI Act or EI Regulations applies and adapting any provisions of the EI Act or EI Regulations. The EI Regulations also provide a system for reducing premiums when the payment of benefits under a provincial law results in a reduction or elimination of corresponding special benefits under the EI Act.

Since January 1, 2006, the Province of Quebec has been providing maternity, parental, and adoption benefits, as well as a dedicated five-week paternity benefit available to birth fathers, to residents of Quebec through the Quebec Parental Insurance Plan (QPIP). Quebec is currently the only province with its own maternity and parental benefits regime. The Government of Canada works closely with the Government of Quebec regarding coordination of the EI program and QPIP.

In Budget 2018, the Government of Canada committed to introducing a new EI parental sharing benefit in 2019. Legislative changes to implement the measure were introduced through the Budget Implementation Act 2018, No. 2 (BIA 2018, No. 2), which received royal assent on December 13, 2018.

The amendments to the EI Act increase the maximum duration of EI standard parental benefits up to 40 weeks when shared, an increase from the current 35 weeks. However, even when the weeks are shared, no parent will be eligible to receive more than 35 weeks. Parents who share the extended duration of EI parental benefits could receive up to 69 weeks of parental benefits, an increase from the current 61 weeks. No parent will be eligible to receive more than 61 weeks, even when the weeks are shared.

Objectives

• Align the EI Regulations with amendments to the EI Act; and
• Ensure that all eligible claimants can access the additional weeks provided under the EI parental sharing benefit.

Description

Regulatory amendments are made to provide that when an EI claimant shares benefits with a claimant under a provincial plan (i.e. QPIP) for the purpose of caring for one or more of their newborn children or one or more children placed with them for the purpose of adoption, 40 weeks of EI standard parental benefits are available to the EI claimant to share. An adjustment to the formula converting standard parental benefits to extended parental benefits is made to provide that, if the EI claimant chooses the EI extended parental benefit option, 69 weeks of benefits are available to the EI claimant to share.

An amendment was also made to ensure that even when the weeks are shared, no parent will be eligible to receive more than 35 standard or 61 extended weeks of EI benefits.

These changes will apply to EI-eligible insured claimants and self-employed persons who share benefits with a claimant under a provincial plan.

Regulatory development

Consultation

QPIP officials are aware of the need for these regulatory amendments. Adjustments to the EI/QPIP administrative agreement on the sharing of parental benefits would be necessary to ensure continued coordination as well as maintain equivalence between the two regimes. These will be done in collaboration with QPIP officials.

Modern treaty obligations and Indigenous engagement and consultation

Constitutional and modern treaty implications have been considered and none have been identified.

Instrument choice

The amendments to the EI Regulations are required for the implementation of the amendments to the EI Act introduced in the BIA 2018, No. 2, as the coordination between the EI program and a provincial plan is done through the EI Regulations, which purpose is to implement the agreement and take into account the application and effect of the provincial law.

Regulatory analysis

Benefits and costs

The regulatory amendments ensure that an EI claimant who coordinates weeks of benefits with a claimant under a provincial plan (such as QPIP) can also be entitled to the EI parental sharing benefit. As a result, the parent who is eligible for EI parental benefits may receive an additional 5 weeks of standard parental benefits, up to the maximum of 35 weeks, or an additional 8 weeks of extended parental benefits, up to the current maximum of 61 weeks.

There are no costs associated with these consequential regulatory amendments.

Small business lens

The small business lens does not apply to the amendments, as there are no direct costs to small business resulting from the EI Regulations.

“One-for-One” Rule

The “One-for-One” Rule does not apply to the amendments, as they do not impose a new administrative burden on employers.

Regulatory cooperation and alignment

The amendments aim to ensure that an EI claimant who coordinates weeks of benefits with a claimant under a provincial plan can also be entitled to the EI parental sharing benefit. The current application of the EI Regulations continues to apply.

Strategic environmental assessment

In accordance with The Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.

Gender-based analysis plus (GBA+)

A GBA+ analysis was not conducted specifically for the regulatory amendments, but one was conducted for the purpose of the EI parental sharing benefit. The analysis found that countries that offer dedicated father-specific parental programs have long-term and positive impacts. These include increased work-life balance and more fairness in time spent on family and household responsibilities. Further, father-specific parental leaves reduce labour market inequality and the gender wage gap, and improve child development outcomes.

Given that women make 85% of parental claims, the parental sharing benefit measure is expected to be primarily accessed by men. As women file the majority of claims and take longer leaves from work, they have more negative long-term career impacts when compared with men.

This measure may introduce a culture shift in parental leave taken by men and encourage greater participation by fathers.

Implementation, compliance and enforcement, and service standards

The regulatory amendments will come into force on the same day the EI Act amendments will come into force, which is anticipated for March 17, 2019. Adjustments will be made to existing procedures of Employment and Social Development Canada (ESDC) to ensure effective and consistent application, including the procedures ensuring the continued exchange of information with QPIP as per the Information Sharing Agreement between the two organizations.

Existing enforcement mechanisms contained in the ESDC’s adjudication and control procedures will ensure that these proposed regulatory amendments are implemented properly.

Service Canada provides Canadians with a single point of access to a wide range of government services and benefits, including the processing and payment of EI claims. Regarding service standards, the Department’s continuing objective is to reach a decision on 80% of all EI claims within the established service standard of the receipt of all pertinent information.

Contact

Rutha Astravas
Director
Employment Insurance Policy, Special Benefits
Skills and Employment Branch
Employment and Social Development Canada
140 Promenade du Portage, 7th Floor
Gatineau, Quebec
K1A 0J9
Telephone: 819‑654‑2923
Fax: 819‑934‑6631