Order Fixing December 18, 2022 as the Day on Which Certain Provisions of the Budget Implementation Act, 2021, No. 1 Come into Force: SI/2022-57

Canada Gazette, Part II, Volume 156, Number 25

Registration
SI/2022-57 December 7, 2022

BUDGET IMPLEMENTATION ACT, 2021, NO. 1

Order Fixing December 18, 2022 as the Day on Which Certain Provisions of the Budget Implementation Act, 2021, No. 1 Come into Force

P.C. 2022-1218 November 17, 2022

Her Excellency the Governor General in Council, on the recommendation of the Minister of Employment and Social Development, under subsection 339(3) of the Budget Implementation Act, 2021, No. 1, chapter 23 of the Statutes of Canada, 2021, fixes December 18, 2022 as the day on which subsection 307(2) and sections 323 and 336 of that Act come into force.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

This Order will set December 18, 2022, as the day on which subsection 307(2) and sections 323 and 336 of the Budget Implementation Act, 2021, No. 1, chapter 23 of the Statutes of Canada, 2021, come into force, pursuant to subsection 339(3) of that Act. These provisions will amend the Employment Insurance Act.

The coming into force of subsection 307(2) will automatically trigger the coming into force of sections 340 to 344 of the Budget Implementation Act, 2021, No. 1 on December 18, 2022, pursuant to section 346 of that Act. These provisions included related amendments to the Canada Labour Code.

Objective

The objective of this Order is to bring into force certain amendments to the Employment Insurance Act in support of the Government of Canada’s commitment to extend from 15 weeks to 26 weeks the maximum number of weeks of Employment Insurance (EI) sickness benefits that can be paid to eligible insured and self-employed workers who are unable to work because of illness, injury or quarantine.

Related amendments to the Canada Labour Code, which extend the maximum length of unpaid medical leave from 17 weeks to 27 weeks and include quarantine among the list of reasons for which an employee may be able to take 27 weeks of unpaid medical leave, will also come into force on the same date set by this Order.

Background

The EI sickness benefits currently provide workers up to 15 weeks of income support at 55% of their average weekly insurable earnings, up to a maximum of $638 per week in 2022 when workers are temporarily unable to work because of illness, injury or quarantine. The EI sickness benefits are designed to ease the financial burden on claimants so that they can focus on restoring their health and return to work.

In 2020–2021, 44% of EI sickness benefits claimants were men while 56% were women. EI sickness benefits are more often accessed by lower- and middle-income workers who are more likely not to have paid sick leave coverage at their jobs.

Since 2010, self-employed workers who wish to be covered by EI special benefits (including EI sickness benefits), can register with Service Canada and pay EI premiums. If they meet the eligibility requirements, these self-employed workers can have access to EI sickness benefits in case of injury, illness, or quarantine. The income replacement rate and the number of weeks of income support for self-employed workers registered for EI special benefits are the same as those provided to insured workers.

In 2020–2021, on average, EI sickness benefits claimants collected 9.1 weeks of sickness benefits. However, one third (33.3%) of claimants used the maximum entitlement of 15 weeks.

In June 2021, Budget Implementation Act, 2021, No. 1 received royal assent, amending the Employment Insurance Act to extend the maximum number of weeks available to be paid under EI sickness benefits from 15 weeks to a maximum of 26 weeks. The Budget Implementation Act, 2021, No. 1 also introduced corresponding extensions to the unpaid medical leave provisions in the Canada Labour Code to ensure that workers in federally regulated industries have the job protection they need while receiving EI sickness benefits.

The amendments to the Employment Insurance Act will extend the maximum number of weeks for sickness benefits which are payable to workers in insurable employment and to the self-employed.

The amendments to the Canada Labour Code will extend the maximum length of unpaid medical leave from 17 weeks to 27 weeks and will add quarantine to the list of reasons for which an employee is entitled to unpaid medical leave. The additional week of leave takes into consideration the EI waiting period of one week and provides additional flexibility for employees. While the amendments to the Employment Insurance Act were designed to come into force by order in council, the amendments to the Canada Labour Code were set to come into force on the same day as the extension of EI sickness benefits.

Implications

Extending EI sickness benefits from 15 weeks to 26 weeks will provide additional weeks of income support to approximately 169 000 Canadians who need more time to recover from their illness, injury or quarantine before being able to return to work. In 2020–2021, there were 450 350 claims for EI sickness benefits for a total amount of $2 billion paid in benefits.

The amendments to the Canada Labour Code will make available 10 additional weeks of unpaid job-protected medical leave to the roughly 945 000 federally regulated private sector employees (or 6% of all Canadian employees) who are subject to Part III (Standard Hours, Wages, Vacations and Holidays) of the Canada Labour Code and are employed by approximately 19 000 federally regulated private sector employers and Crown corporations.

Consultation

Members of Parliament and Senators examined the Budget Implementation Act, 2021, No. 1 as part of the legislative process. During those discussions, Members of Parliament representing the Conservative, NDP and Bloc Québecois parties urged the Minister of Employment, Workforce Development and Disability Inclusion to extend the maximum number of weeks that can be paid under EI sickness benefits from 15 weeks to 50 or 52 weeks. For many years, stakeholder groups have been recommending an extension to EI sickness benefits and have welcomed the extension from 15 weeks to 26 weeks. Stakeholders and members of Parliament alike have urged the Government to implement this extension as soon as possible.

Contact

Benoit Cadieux
Director
Employment Insurance Policy
Employment and Social Development Canada
Telephone: 613‑979‑0432
Email: benoit.cadieux@hrsdc-rhdcc.gc.ca